This High-Yield Dividend Stock Has Hit a Speed Bump -- but Sees Better Days Ahead
W.P. Carey (NYSE: WPC) has steadily grown over the years. It has become one of the largest real estate investment trusts (REIT) focused on net lease properties (i.e., leases where the tenant covers most or all of the property's expenses like taxes, insurance, and maintenance). Acquisitions have played a major role in expanding its portfolio, which had over 1,500 properties at the end of the third quarter. That steady growth enabled W.P. Carey to routinely increase its dividend.
Unfortunately, the REIT has hit a speed bump this year. Surging interest rates slowed its acquisition activity. Meanwhile, it decided to accelerate its exit from the beleaguered office sector. These headwinds impacted earnings and will cause the company to reset its dividend, which currently yields around 8%.
However, W.P. Carey expects that its repositioned portfolio will enable it to grow faster in the future. That could allow it to steadily rebuild its dividend.
Source Fool.com
