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1 Magnificent High Yield Stock Down 33% to Buy and Hold Forever
WPCW. P. Carey(WPC) The Motley Fool·2025-04-12 07:05

Core Viewpoint - The current market is experiencing uncertainty due to a potential tariff-driven trade war, leading investors to seek safe havens like Coca-Cola while others see market declines as buying opportunities for high-yield stocks like AGNC Investment [1][2]. Group 1: Investment Opportunities - Coca-Cola has seen its stock price rise amid market turbulence, but its valuation metrics are above five-year averages, and its dividend yield is near a decade low at 2.9% [5]. - AGNC Investment offers a high dividend yield of 16%, significantly higher than the typical 10% market return, but its dividend reliability is questionable due to a long-term downtrend since its IPO [3][4]. - W.P. Carey, a high-yield net lease REIT, has shifted focus from the office sector to stronger segments like warehouse and retail, leading to a dividend reset but a return to quarterly increases, indicating a potential for long-term growth [7][9]. Group 2: Risks and Considerations - AGNC Investment's history of dividend cuts raises concerns about its reliability as a source of income, making it a risky choice for dividend investors [11]. - Coca-Cola's current high valuation could turn it into a poor investment despite its strong dividend history, as overpaying for quality stocks can lead to losses [5]. - W.P. Carey's stock has declined by 33% since its office exit announcement, but the management's ability to resume dividend increases suggests a strong recovery potential [9][10].