Want $1,000 in dividend income? Here’s how much you need to invest in WP Carey stock.

WP Carey (WPC -1.14%) has a long history of paying dividends. While the diversified real estate investment trust (REIT) restored its payout last year after making the strategic exit decision troubled office sector, still offers a high yield. At over 5.5%, it is significantly over S&P 500his dividend yield (less than 1.5%).

So high dividend yield allows investors to generate more income for every dollar they invest REITs stock.

WP Carey was rebuilding its dividend after last year’s strategic reset. Its current payout level is up to $0.875 per share each quarter ($3.50 annually). At this payment of dividends rate, you would need to own more than 285 shares to produce $1,000 of dividend income every year. With the stock recently priced around $63, you’d need to invest nearly $18,000 in its stock to collect $1,000 in dividend income annually.

This is a much lower investment rate compared to other options. For example, given the much lower dividend yield of the S&P 500, you would need to invest more than $79,000 in a S&P 500 Index Fund to reach $1,000 of annual income from dividends.

WP Carey’s dividend should grow in the future. It got out of the office sector because of the headwinds for those properties. Those sales brought in cash to reinvest in properties with better long-term growth potential such as industrial building.

It has already begun to rebuild its portfolio, buying $641 million worth of properties in the first half of the year, including a portfolio of 19 industrial properties it bought in a two-stage deal for $190 million . These and future acquisitions should increase the REIT’s rental income, which will allow to increase its dividend.

With a with high yield payment that should increase steadily in the futureWP Carey is a great option for those looking to collect passive dividend income.