2024-04-05 05:26:17 ET
Summary
- W. P. Carey stock price rallied and then fell back to September 2023 levels, presenting a second opportunity to consider a position.
- The spinoff of the problematic part of the portfolio into a separate company should lead to improved per share growth.
- WPC stock price has lagged despite a recently announced dividend increase, creating a contrarian opportunity for investors.
- The spinoff should improve the company's future prospects. The stock market clearly disagrees.
- This is still investment grade, and management is probably still very good at what it does.
After I wrote my original article on W. P. Carey ( WPC ) back in September 2023, the stock price rallied for a trading profit and then fell back to about where it was last September. Last September was a good price to consider a position in this company. Now, the dividend has been raised , so the deal is slightly better. That is probably a sign that management wants to get back to "business as normal". That new "normal" should be an improvement now that the problems with the portfolio are in a separate company. Otherwise, there was no reason to spinoff that business to shareholders in another company. That probably means that per share growth should be a few percentage points faster without a negative influence in the portfolio. But the market is still looking at the past as usual....
Read the full article on Seeking Alpha
For further details see:
W. P. Carey: Mr. Market Is Giving Second Chances To Investors