This Once Magnificent Dividend Stock Is Still an Attractive Income Investment
W.P. Carey (NYSE: WPC) was a magnificent dividend stock. The diversified real estate investment trust (REIT) had increased its payment each year for a quarter century.
However, that streak has ended abruptly. W.P. Carey has reset its payment rate by reducing it by nearly 20% following its strategic exit from the office sector. While that's disappointing for income-focused investors, it puts the diversified REIT in a stronger position to grow, including increasing its payout from that reset rate. It still looks like an attractive investment for those seeking to collect passive income.
W.P. Carey recently declared its latest dividend payment, setting its quarterly rate at $0.86 per share ($3.44 annually). That's a 19.7% decrease from its prior rate of $1.071 per share each quarter ($4.28 annually). That will push its dividend yield down from 6.8% to 5.5% at the recent share price. It's still well above average: The REIT sector is around 5%, while the S&P 500's yield is 1.6%.
Source Fool.com
