W.P. Carey: Buy, Sell, or Hold?
W.P. Carey (NYSE: WPC) has long been touted as an excellent dividend-paying stock, having raised its payout for 26 consecutive years. However, the company broke the news last year that the long payout streak would end as it shifted its focus amid tough conditions in the commercial real estate market.
The move should help it shore up its balance sheet and eliminate more risky assets from its books, but it has come at a cost to investors -- the stock is down 30% in the past year. The move could help W.P. Carey in the long run, but is it enough to make the stock a buy today? Let's dive in and find out.
W.P. Carey is one of the largest real estate investment trusts (REITs) in the U.S. With over 1,424 properties across 26 countries, the company has a significant footprint across the commercial real estate market. As an REIT, W.P. Carey must pay out 90% of its income to shareholders, which is why these companies attract income-focused investors.
Source Fool.com
