W. P. Carey & Realty Income Dividend Stocks: Financial Expert Analysis - Not a Giant Rise?

W. P. Carey & Realty Income Dividend Stocks: Financial Expert Analysis - Not a Giant Rise?

Realty Income & W. P. Carey: More dividends? The basics

Realty Income increased its monthly dividend per share to $0.257 from $0.2565 previously. The dividend yield is 5.96%. W. P. Carey pays out $3.46 per year to investors, allowing for a dividend yield of 6.23%.

This is Realty Income's 124th consecutive increased dividend over a period of nearly 54 years. The dividend yield appears to be solid. The dividend at W. P. Carey was recently cut, but management is aiming to increase the payout again in the long term.

Both REITs are fundamentally valued comparatively cheaply. Realty Income has a price-to-FFO ratio of approximately 12.9, while W. P. Carey makes an FFO return of 8% per year quite possible.

Not too soon more passive income

Realty Income and W. P. Carey are not expected to see significantly higher dividends any time soon. Both companies have projects and investment opportunities in which they need to invest. Opportunity costs play a role here.

W. P. Carey is currently investing in new growth to increase funds from operations per share over the long term. The company plans to invest $1.5 billion to $2.0 billion in 2024. On the other hand, Realty Income has net debt of $21.9 billion and also plans to invest in new properties.

Realty Income & W. P. Carey: More quality, not more dividends

It would make more sense if Realty Income and W. P. Carey focused on more quality instead of paying out more dividends. Lower debt and a stronger balance sheet would be an advantage. Investors should prioritize long-term stability and quality rather than short-term dividend maximization.

Vincent owns shares of Realty Income and W. P. Carey. Aktienwelt360 recommends stocks from Realty Income and W. P. Carey.