Is High-Yield W.P. Carey Stock a Buy?
Investors' first reaction to a dividend cut is often to hit the sell button. After that point, many on Wall Street won't even consider the dividend cutter again for years. That's the position that W.P. Carey (NYSE: WPC) finds itself in today as it looks to regain investor trust after a dividend cut. But there are some very good reasons to consider buying the net lease real estate investment trust (REIT) despite the lack of love it gets today. Here are just three of them.
The average real estate investment trust is yielding 3.9% today, using Vanguard Real Estate Index ETF as an industry proxy. The largest net lease REIT, Realty Income, has a yield of around 5%. W.P. Carey's dividend yield is 5.7%. From a relative perspective, W.P. Carey's yield is pretty attractive. It's also attractive on an absolute basis, too, noting that the S&P 500 index's yield is a scant 1.2%.
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Source Fool.com
