The REIT's faster earnings growth bodes well for its ability to continue increasing its high-yielding dividend. W.P. Carey's (WPC 0.77%) growth had stalled following its strategic decision to exit the troubled office sector. However, the real estate investment trust (REIT) is now regaining its momentum this year. Rising rental rates and robust investment activity are accelerating the company's earnings growth beyond its initial expectations. More growth ahead W.P. Carey has already secured another $227.2 mi ...

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]