This High-Yield Dividend Stock Plans to Buy Its Way Back Into Growing Again
W.P. Carey (NYSE: WPC) had been a model of consistent growth for nearly a quarter century. However, that came to an end last year after the real estate investment trust (REIT) made the strategic decision to exit the office sector. That move led it to reset its dividend, which it had increased every year since it came public.
The diversified REIT is now in a transitional phase as it completes several more property sales. It plans to replace them by buying new properties with better growth prospects. That portfolio refresh should eventually allow the REIT to start increasing its dividend (which still yields an attractive 6.1% after its reset).
W.P. Carey unveiled its strategic decision to exit the office sector last fall. It subsequently spun off a portion of its portfolio into a new office REIT, Net Lease Office Properties. In addition, it has sold 79 office properties for a total of $608.1 million. It closed $220 million of those sales late last year and another $387.8 million in January. The REIT also sold $242 million of non-office properties last year.
Source Fool.com
