W. P. Carey Inc. Aktie News

W. P. Carey is undervalued post-spinoff, with downside risk largely priced in and recovery potential intact. The business remains recession resistant. Market sentiment is negative due to the dividend cut.

Recent earnings and dividend announcements reveal profit and growth pressures for WPC, prompting a downgrade from Buy to Hold. Dividend growth remains sluggish post-cut, and the current yield of 5.72% is below the long-term average, signaling valuation risk. P/FFO ratio, when adjusted for growth and yield, has also become quite unfavorable.

When Your REIT Will Cut Its Dividend

W.P. Carey remains a solid REIT with growth initiatives and a 5.84% yield, but I remain cautious. Despite revenue and property growth, valuation remains only fair, with shares not cheap enough to warrant a bullish rating. Relative to peers, W.P. Carey has higher leverage and a lower yield, making its premium valuation difficult to justify.

Dividend cut announcements trigger sharp REIT sell-offs, regardless of whether cuts are forced by trouble or are responsible capital allocation decisions. I consistently find opportunity in buying REITs after responsible dividend cuts, as the market often overreacts despite strong underlying fundamentals. Historical examples like WPC, BRX, KIM, WSR, and GOOD show significant price recovery afte...

President Trump's trade deal with China may reduce the risk of accelerating inflation. This should give the Fed more flexibility to cut interest rates in a weakening economy. The biggest winner in all of this? Dividend stocks.

In Q1 2025, VICI, GLPI, Agree, and Realty Income generated positive investment spreads and total returns exceeding their cost of equity, making them attractive investments. EPRT and STAG have negative investment spreads and total returns below their cost of equity, making them less favorable investment options. This analysis uses cap rates and the weighted average cost of capital to estimate in...

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