There are a lot of things to like about W.P. Carey (NYSE: WPC). But its dividend record is no longer one of the positives investors can point to when considering the stock. That's because the real estate investment trust (REIT), after nearly 25 years of annual increases, cut its dividend at the end of 2023. The decision signaled an important change and will make 2024 a difficult year for investors to sit through.
In something of a shock move, W.P. Carey cut its dividend in 2023 in conjunction with a shift in its business plan. Historically, the real estate investment trust had a widely diversified portfolio, spread globally across the warehouse, industrial, retail, and office sectors. Office assets, however, have been deeply out of favor since the start of the coronavirus pandemic. The work-from-home trend that started then hasn't gone away and is a big part of the problem. Instead of slowly exiting the office space, W.P. Carey chose to spin off and sell all of its office properties in one fell swoop.
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Source Fool.com