Why I Keep Buying This 5.8%-Yielding Dividend Stock and Expect to Buy Even More Shares in the Future

Core Viewpoint - The company aims to achieve financial independence through the generation of passive income, primarily by investing in high-quality, high-yielding dividend stocks like W.P. Carey [2][12] Company Overview - W.P. Carey is a diversified real estate investment trust (REIT) that owns a portfolio of operationally critical properties across North America and Europe, focusing on single-tenant industrial, warehouse, and retail properties [4] - The REIT operates under long-term net leases that provide stable rental income, with 47% of leases having fixed-rate escalations and 50% linked to inflation [4] Financial Strategy - W.P. Carey aims to distribute 70% to 75% of its stable cash flow as dividends, allowing for a balance between returning capital to shareholders and funding new investments [5] - The company maintains a conservative leverage ratio, targeting the mid-to-high fives range, with a current ratio of 5.8, supporting its ability to pay dividends and grow its portfolio [6] Income Generation - The REIT's dividend yield stands at 5.8%, significantly higher than the S&P 500's sub-1.5% yield, indicating a sustainable income foundation [7] - W.P. Carey has embedded rent growth in its leases, with same-store annual base rent increasing at a 2.4% annualized pace in the first quarter, and up to 4.3% in recent years [8] Growth Drivers - The company plans to invest between $1 billion and $1.5 billion in new properties this year, having already secured nearly $450 million in new investments in the first quarter [9] - W.P. Carey is also focused on selling between $500 million and $1 billion of properties to fund new investments while maintaining its targeted leverage range [10] Dividend Policy - The REIT has consistently increased its dividend every quarter since a strategic shift away from the office sector in late 2023, having a history of annual dividend increases for over 25 years [11]