From Dividend Reset to Recovery: W.P. Carey's Strategy for Winning Back Wall Street's Trust

After 24 years, W.P. Carey's (NYSE: WPC) streak of annual dividend increases was about to hit an important milestone. However, the real estate investment trust (REIT) did something that seemingly made no sense -- it cut its dividend just months short of hitting 25 consecutive annual dividend hikes. Investors were not pleased, but W.P. Carey is hard at work trying to prove that this cut was really just a reset. Here's why this high-yield REIT is still worth buying.The fact that W.P. Carey is a net-lease REIT is an important factor to consider in its decision to exit the office sector. Net-lease assets are generally single-tenant properties. Although the tenant is responsible for most property-level expenses, the big risk for the landlord is that the tenant may not renew the lease when it ends. Given the troubled state of the office sector after the coronavirus pandemic, the single-tenant risk of net lease office assets is particularly high right now.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool