Is W.P. Carey Stock a Buy?
Many investors don't believe they should put money into veteran real estate investment trust (REIT) W.P. Carey (NYSE: WPC). After all, REITs are dividend stocks, and since announcing a dividend cut in September 2023, W.P. Carey's stock price has lagged well behind those of many other REITs -- like Realty Income, Crown Castle, and Healthpeak Properties.
Often, an underperforming stock reflects an underperforming company. I don't feel that's the case with W.P. Carey. Rather, I think it's still being punished by the market for that dividend cut. Let's unpack this a little -- perhaps we'll find that the REIT is worthy of a place in our stock portfolios.
W.P. Carey is something of an outlier in the REIT world, as it doesn't laser-focus on one type of real estate. It's more typical in that business to target a segment and stick with it, as has Realty Income (retail properties), Crown Castle (telecom and tech infrastructure), and Healthpeak (healthcare and related facilities).
Source Fool.com
