Negative market sentiment around W.P. Carey (NYSE: WPC) is high today. The stock has seen a material price decline, and the yield has been pushed up to 6.4%. That's an attractive level relative to other large net-lease real estate investment trusts (REITs). Here's why W.P. Carey can keep paying investors well despite some very real headwinds.

To start the discussion of W.P. Carey's dividend, it is important to note that the REIT has increased the payment each year since its 1998 initial public offering (IPO). Think about that time span, which included the 2000 tech crash, the Great Recession, and the global coronavirus pandemic. The dividend was increased through each of these massive market and economic dislocations. Clearly, the board of directors places a great deal of importance on reliably returning cash to shareholders.

The REIT is also investment-grade rated, earning a BBB+ from S&P Global. Notably, that rating was recently increased. That means that the company's already solid financial foundation is getting more sound. A strong balance sheet provides an important underpinning for dividend payments.

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Source Fool.com