Although it's not as well-known as some of its real estate investment trust (REIT) peers, W.P. Carey (NYSE: WPC) is something of an icon in the institutional property market. The company's namesake founder was one of the first to popularize the sale/leaseback net lease model. That said, the dividend has been growing very slowly of late, which might turn some income investors off. There are reasons for the slow growth and, just as important, reasons to think the pace will soon pick up.
W.P. Carey is a net lease specialist. That means that its tenants are responsible for most of the operating costs of the properties they occupy. Although any one property is high-risk, since there's just a single tenant, across a large portfolio the risk is greatly diminished. The REIT owns over 1,300 assets, so it is fairly large.
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Why Is This Passive Income Stock's Dividend Growth So Slow?