This 5.5%-Yielding Dividend Stock Sees Even Better Growth Ahead in 2025

Core Insights - W.P. Carey is experiencing accelerated earnings growth, which positions the company well to continue increasing its high-yielding dividend of 5.5% [2][11] - The REIT's strategic exit from the office sector has allowed it to regain momentum, supported by rising rental rates and robust investment activity [1][4] Financial Performance - In the second quarter, W.P. Carey reported a 10.5% increase in rental revenue and a 9.4% rise in adjusted funds from operations (FFO) per share [4] - The company achieved 2.3% same-property rent growth due to contractual rental increases [4] Investment Activity - W.P. Carey invested $1.6 billion in new properties last year, with a record $841.3 million in the final quarter [5] - In the first and second quarters of this year, the company made additional investments of $275.1 million and $548.6 million, respectively [5][8] - The REIT's new investments primarily focused on industrial and warehouse properties, showcasing its global reach with investments in multiple countries [6] Future Outlook - W.P. Carey has secured $227.2 million in new investments in the third quarter, bringing the year-to-date total to $1.1 billion, exceeding initial guidance [8] - The company raised its full-year investment outlook to between $1.4 billion and $1.8 billion [8] - W.P. Carey is on track to close $900 million to $1.3 billion in property dispositions this year, up from initial plans of $500 million to $1 billion [10] Earnings Guidance - The higher investment volume has led W.P. Carey to raise its full-year adjusted FFO-per-share guidance to between $4.87 and $4.95, indicating a 4.5% growth at the midpoint [11] - The company has consistently increased its dividend payout every quarter since late 2023, including a 3.4% increase this year [11][12]