WP Carey: Buy, Sell or Hold?

WP Carey (NYSE: WPC) has undergone a transformation over the past year by restructuring its real estate portfolio to make its business more resilient. The company sold off more office properties and ended its 26-year streak of dividend hikes last year, but is on a new, more sustainable path.

Dividend investors may have been put off by the company’s move last year, but it could prove wise in the long run. With a dividend yield of around 5.5% and plenty of cash to put to work in new investment properties, WP Carey looks like a solid choice for income investors today. Here’s why.

Rising interest rates over the past two years have put significant pressure on real estate companies. With interest rates at multi-decade highs, financing costs for companies have exploded, dampening activity in the commercial real estate sector.

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