3 Stocks That Could Create Lasting Generational Wealth
If you are looking for stocks to own that you can, eventually, hand on to your children, then you need to make sure you stick with the biggest and best names. One of the best ways to do that is to focus on industry-leading companies with great dividend histories. W.P. Carey (NYSE: WPC), Enbridge (NYSE: ENB), and Medtronic (NYSE: MDT) all fit that bill. Here's why this trio could help you create lasting generational wealth.
W.P. Carey is a net lease real estate investment trust (REIT). That means it owns single tenant properties for which the lessee is responsible for most of the property-level expenses. Over a large enough portfolio, this is a fairly low-risk approach to real estate ownership. W.P. Carey layers diversification on top of that, with rents spread across the industrial (26% of rents), warehouse (24%), office (19%), retail (18%), and self-storage (5%) sectors, with a fairly large "other" section rounding things out. It also generates about 37% of its rents from outside the U.S., largely Europe.
But the real sign of success here is that W.P. Carey has increased its dividend every single year since its initial public offering in 1998. If you include the dividend increase in 2022, W.P. Carey has put up 25 years of consecutive annual increases, which puts it in Dividend Aristocrat territory. The thing is, W.P. Carey has been around longer than it has been public. In fact, it was one of the first companies to popularize the net lease model, specifically building a diversified portfolio that allows it to invest where management thinks it can find the most value for investors. With its generous 5.1% dividend yield, investors looking to collect dividend checks today and provide income for heirs tomorrow should take a look.
Source Fool.com
