1 High-Yield Dividend Stock to Buy and 1 to Avoid

Core Viewpoint - The article compares two dividend-paying REITs, Ventas and W.P. Carey, highlighting that W.P. Carey is currently the better investment option due to its reliable dividend growth and diversified portfolio, while Ventas has struggled with dividend cuts and has not yet restored its dividend [2][10]. Company Analysis Ventas - Ventas is a healthcare REIT that owns senior housing assets, medical offices, and research facilities, and has a significant portion of its portfolio in senior housing operating assets (SHOPs) [3][4]. - The company faced financial difficulties during the COVID-19 pandemic, leading to a dividend cut due to decreased cash flow from its SHOP portfolio [4][6]. - Although Ventas reported a 7% year-over-year increase in funds from operations (FFO) in Q2 2024, it has not yet resumed dividend payments, raising concerns about its focus on providing reliable income to investors [5][6]. W.P. Carey - W.P. Carey is a net lease REIT that offers a higher dividend yield of 5.6%, compared to Ventas' 2.8% yield, and is known for its diversified portfolio across various sectors including warehouse, industrial, and retail [7][8]. - The company recently exited the office asset segment, which constituted 16% of its portfolio, resulting in a dividend reset; however, it has since resumed increasing its dividend every quarter, signaling a commitment to returning value to shareholders [8][9]. - W.P. Carey is recognized for its management's focus on maintaining and growing dividends, making it a more attractive option for dividend investors compared to Ventas [9][10].