Top Stocks Worth Investing: Realty Income versus W.P. Carey
In the realm of Real Estate Investment Trusts (REITs), Realty Income Corporation and W.P. Carey Inc. stand out as prominent players, particularly in the single-tenant net lease sector. Both companies have portfolios with exposure to North America and Europe, but they differ significantly in several key aspects.
Realty Income, a $50 billion market cap giant with over 15,600 properties, is primarily focused on retail properties. Known for its uninterrupted 30-year dividend increase streak, the company pays monthly dividends to its shareholders. However, the dividend growth has been modest recently, with a year-over-year increase of just 0.2%.
On the other hand, W.P. Carey, a smaller player with a market cap under $14 billion and approximately 1,600 properties, is more tilted towards industrial and warehouse assets. The company previously had office assets but exited that sector in late 2023, leading to a dividend reset. Despite this, W.P. Carey shows higher dividend growth potential. Its recent dividend hikes have been over 3%, and it trades at a 5.74% dividend yield.
W.P. Carey's portfolio consists mainly of larger-sized properties, with assets tending to be industrial/warehouse types. This makes the company more aggressive, leading to faster growth. For investors seeking a combination of yield and dividend growth, W.P. Carey might be a better choice.
Realty Income, with its slow-moving nature, may appeal more to conservative investors, while W.P. Carey may attract more aggressive income investors. Both REITs have similar dividend yields, with Realty Income at 5.6% and W.P. Carey offering slightly more.
W.P. Carey, which helped to popularize the net lease concept before becoming a public entity, pays its dividend on a quarterly basis. In contrast, Realty Income, famous for its long uninterrupted dividend increase streak and monthly payout, offers a more regular income stream.
In summary, for investors looking for diversification within net lease REITs, the portfolios and strategies of Realty Income and W.P. Carey can provide a complementary mix. Each REIT offers unique advantages, with Realty Income providing a steady, conservative income stream, and W.P. Carey offering the potential for stronger growth due to its focus on industrial and warehouse assets and its use of inflation-linked leases and fresh acquisitions.
finance plays a significant role in both Realty Income Corporation and W.P. Carey Inc, as they raise money through public markets to invest in real-estate. Realty Income, known for its consistent dividend increases, focuses on retail properties, while W.P. Carey, more aggressive in its approach, invests in industrial and warehouse assets, showing higher potential for dividend growth. If you're seeking a combination of yield and dividend growth, W.P. Carey might be a better choice. For conservative investors, Realty Income's slow-moving nature might appeal more due to its steady income stream. In summary, these two REITs offer a complementary mix of investments, with Realty Income providing a conservative option, and W.P. Carey, a more growth-oriented choice.
