Down 42%, Is Ultra-High-Yield W.P. Carey Stock a Buy on the Dip?

Core Viewpoint - W.P. Carey is currently undervalued, offering a 6.6% yield despite a 40% decline in share price since 2019, making it an attractive option for passive income seekers [1][3]. Group 1: Stock Price Pressure - W.P. Carey faced stock price pressure due to its decision to spin off its office segment in late 2023, which led to a reduction in dividend payouts [3][4]. - The company’s dividend was lowered by 19.7% to $0.86 per share in 2023, contributing to investor caution [9]. - Rising Treasury yields, which increased by 27.9$1.18 per share, only 12% lower than the previous year [8]. - The REIT raised its dividend payout four times in 2024 to $0.88 per share, indicating a recovery and potential for future increases [9][10]. - The company invested$1.6 billion in 2024 into single-tenant warehouse and industrial properties, which is expected to enhance future FFO [10][11]. Group 3: Investment Outlook - W.P. Carey is positioned to support future dividend increases due to sufficient earnings and a growing portfolio [11]. - The current high yield makes it a compelling option for income-seeking investors, even with a slower growth rate [12].