2024-06-13 11:30:00 ET
Summary
- W. P. Carey stock could receive a much-needed respite from a less hawkish Fed.
- The Fed is expected to cut interest rates at least once in 2024.
- Europe has already cut its interest rates, helping WPC to improve its investment opportunities there.
- WPC is well-positioned to capitalize on a less hawkish macro moving forward.
- I argue why investors shouldn't wait for the tide to turn first while also getting an attractive 6% dividend yield. Read on.
W. P. Carey: Fed's Less Hawkish Stance Should Benefit
Leading net-lease REIT W. P. Carey Inc. ( WPC ) stock has continued to underperform the S&P 500 ( SPX ) ( SPY ) since my last update in March 2024. I upgraded WPC stock as I assessed that fears in WPC likely reached a peak. In a hostile environment for even net-lease leaders like WPC, investors are justified to feel aggrieved, as WPC posted a 1Y total return of -14.2%. As a result, WPC's significant underperformance is in stark contrast to the S&P 500, which struck new highs this week....
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W. P. Carey: The Tide Is Turning With A 6% Yield