Here's Why W.P. Carey Stock Can Pay You for Years
What if there was a way that you could make your money work for you by providing consistent and slowly growing income? Fortunately, there is an investment strategy that can deliver exactly that to you.
The strategy is called dividend growth investing. And there are many businesses with reputations of decades of dividend growth that could fit within this investing approach. With 26 consecutive years of dividend growth under its belt, W.P. Carey (NYSE: WPC) is one such real estate investment trust (REIT) that investors may want to ponder buying for their portfolios. Here's why the REIT could pay rising dividends to shareholders for many more years.
W.P. Carey is a net lease REIT whose strong suit is purchasing single-tenant properties from clients and leasing them back to said clients, otherwise known as a sale-leaseback transaction. The benefit to the REIT is that these leases run for a long time -- the weighted average of its existing leases is 10.9 years -- and include annual rent increases mostly tied to inflation. This builds visibility and growth into W.P. Carey's rent revenue. Tenants are eager to sign these leases because the funds they receive from such deals can help grow their business or strengthen their financial health.
Source Fool.com
