Despite an Upcoming Payout Reset, This High-Yielding Dividend Stock Is a Top Buy for Income and Upside
W.P. Carey (NYSE: WPC) has been a terrific dividend stock over the years. The real estate investment trust (REIT) had steadily increased its payout each year for nearly a quarter century.
However, that streak is ending following the diversified REIT's decision to accelerate its exit from the office sector. It intends to reset its payout (which currently yields 7.5%) to reflect its reduced cash flows and allow it to retain more money to invest in new properties. While painful in the near term, that plan could create more value for investors over the long run.
W.P. Carey has been slowly shifting its portfolio away from the office sector over the years. The REIT got 30% of its total annual base rent from office properties at the end of 2015. It has cut that in half over the years by selling off office properties and focusing new investments in other sectors like industrial and warehouses.
Source Fool.com
