2024-05-17 16:00:00 ET
Summary
- W. P. Carey continues to offer a compelling dividend investment thesis, thanks to its rich forward yields and reasonable AFFO Payout Ratio.
- Investors may also finally look forward to its AFFO per share growth from 2024 onwards, thanks to the more than decent spread on their cost of capital.
- Combined with the higher for longer interest rates, we believe that WPC's office exit & prudent investment/ disposition volume remain commendable during an uncertain macroeconomic environment.
- We have also observed bullish support over the past few months, implying that the worst of the pessimistic divestiture-related sentiments may already be behind us.
We previously covered W. P. Carey ( WPC ) in February 2024, discussing why we had doubled down on our previous Buy rating. This was despite the market's pessimism on the office exit and the subsequent pullback after the FQ4'23 earning call....
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W. P. Carey: Rich Dividend Yields, With Profitable Spread Triggering AFFO Growth