Is W.P. Carey Stock a Buy Now?

Core Viewpoint - W.P. Carey is attempting to rebuild its reputation among investors after a dividend cut in late 2023, which has raised questions about its future as a reliable investment option [1][2]. Company Overview - W.P. Carey is a well-established real estate investment trust (REIT) that has faced challenges due to the pandemic, particularly with its office properties, which constituted about 16% of its annual base rate in mid-2023 [3]. - The company has a strong occupancy rate, maintaining above 97% since 2010, indicating that its business fundamentals remain solid despite the recent strategic changes [4]. Dividend Strategy - The recent dividend cut was a strategic decision aimed at aligning the company's financials and improving its long-term viability, rather than a sign of financial distress [4]. - W.P. Carey offers a current dividend yield of 6.2%, with a payout ratio of 74% based on projected 2024 funds from operations of approximately $4.70 per share [6]. Investment Returns - Since 1998, W.P. Carey's stock price has appreciated by 158%, but when including dividends, the total investment return reaches 1,500%, significantly outperforming the S&P 500 index [5]. - The company's annualized base rate grows at a low-single-digit pace, making it primarily attractive for immediate yield rather than growth [7]. Market Position - W.P. Carey is currently trading near the low end of its 52-week range, which may be influenced by the stigma of the dividend cut and competitive Treasury yields [9]. - The stock's historical dividend yield is considered average, suggesting it remains a viable option for income-focused investors [10].