WPC - Before You Buy First Republic: Here's a High-Yield Finance Stock I'd Buy First
2023-04-20 05:20:00 ET
First Republic (NYSE: FRC) is in trouble. The bank not only eliminated its dividend, but it also suspended dividends on preferred shares. That's one of those last-ditch things a company does when cash is in extremely short supply. Most investors should avoid it as they look for bargains following the March bank run and its subsequent fallout.
Dividend investors looking for alternatives might want to pick up W.P. Carey (NYSE: WPC) , which isn't a bank but actually does some important similar things.
It isn't unusual for a company facing financial strain to eliminate its dividend payment. So when First Republic did that in mid-March it was hardly shocking. The basic impetus was the bank runs that were, at that point, taking shape at smaller, regional banks. Although the two banks that ended up going under were unique situations (one focused on serving the cryptocurrency sector and the other tech start-ups), more traditional First Republic has gotten caught up in the situation, too.
For further details see:
Before You Buy First Republic: Here's a High-Yield Finance Stock I'd Buy First