This More Than 6%-Yielding Dividend Stock Continues to Rebuild Its Payout

Core Viewpoint - W. P. Carey has successfully transitioned its portfolio and financial profile, leading to a stronger foundation for future growth and dividend increases after a challenging period in the office sector [1][3][10] Portfolio Restructuring - The company has sold or spun off its entire office portfolio and several other properties, including self-storage assets, to focus on a more conservative investment strategy [3][6] - As of mid-2023, the portfolio mix included 29% industrial, 24% warehouse, 16% office, 17% retail, and 4% self-storage, which has since shifted to 35% industrial, 28% warehouse, 22% retail, and 15% in other categories [3][4] Financial Metrics - The dividend payout ratio has been reduced from over 80% to a target range of 70%-75%, allowing for greater cash retention for new investments [3] - The leverage ratio has improved from 5.7x to 5.4x, providing additional investment capacity [3] Dividend Growth - W. P. Carey has increased its dividend every quarter in 2024, raising the quarterly rate from $0.86 per share to $0.88 per share, marking a 2.3% year-over-year increase [5] - The company anticipates continued dividend increases supported by a stronger financial profile and portfolio [9][10] Investment Activity - The company sold $1.2 billion in assets over the past year, with expectations to increase this to $1.3 billion-$1.5 billion by year-end through additional noncore property sales [6] - By the end of October, W. P. Carey had made $971.4 million in investments, including significant acquisitions in the industrial and warehouse sectors [7] Future Outlook - W. P. Carey expects to continue growing its portfolio next year, leveraging post-dividend free cash flow and debt capacity to make accretive acquisitions without needing to sell stock [9] - The company is projected to close around $1.5 billion in new investments this year, with over $500 million in additional deals in the pipeline [8]