Latest news with #W.P.Carey
Yahoo
29-05-2025
- Business
- Yahoo
Want More Money? These 3 High-Yield Dividend Stocks Are on Track to Give You a Raise Every Single Quarter.
Clearway Energy has a clear strategy to increase its quarterly dividend. Energy Transfer aims to raise its big-time payout by 3% to 5% per year. W.P. Carey has dual growth drivers pushing its quarterly payout higher. 10 stocks we like better than Energy Transfer › Most top dividend stocks strive to boost their payments at least once a year. However, some companies are even more generous. They aim to give their investors a raise every single quarter. That enables investors to collect a very steadily rising income stream. Clearway Energy (NYSE: CWEN.A)(NYSE: CWEN), Energy Transfer (NYSE: ET), and W.P. Carey (NYSE: WPC) have been hiking their high-yielding payouts each quarter for the past few years. While future payments are not guaranteed, these look like ideal stocks to buy to collect a very steadily rising stream of passive income. Clearway Energy currently pays a $0.4384 per-share dividend ($1.75 annualized). The clean energy company has a 5.7% dividend yield at its current rate and share price. The company generates very stable cash flow by selling clean energy to utilities and large corporate customers under long-term, fixed-rate power purchase agreements (PPAs). The company has been raising its dividend each quarter (it hiked its payout by 1.7% last quarter), and it's targeting to pay a total of $1.76 per share in dividends this year. It aims to deliver 6.5% dividend-per-share growth next year and raise its payment in the bottom half of its 5%-8% long-term target range in 2027. Powering Clearway's growing dividend is its investments to expand its clean energy portfolio. For example, it recently bought an operational solar farm in California and a wind farm in Washington. The company also agreed to re-power the Mt. Storm Wind project in West Virginia by installing larger turbines. It will sell the power from that project to Microsoft under a 20-year PPA. The company uses its post-dividend free cash flow and balance sheet flexibility to fund growth investments. Energy Transfer currently pays a quarterly distribution of $0.3275 per unit ($1.31 annualized). That gives the master limited partnership (MLP) a 7.3% yield at its recent unit price and distribution level. The energy midstream company aims to raise its distribution by $0.0025 per unit each quarter ($0.01 annualized), which works out to a 3% to 5% annual growth rate. The MLP, which sends its investors a Schedule K-1 federal tax form each year -- so unitholders will have a little extra paperwork -- generates very stable cash flow because fee-based assets supply about 90% of its annual earnings. Energy Transfer aims to distribute a little more than half of its stable earnings to investors, retaining the rest to invest in growing its operations and maintaining a rock-solid financial profile. Energy Transfer is investing about $5 billion into growth capital projects this year, which should come online through the end of next year. Those expansions will supply it with incremental sources of cash flow as they enter commercial service. It has many more projects under development that it could approve in the future. Meanwhile, its strong balance sheet gives it the financial flexibility to make accretive acquisitions as opportunities arise. It bought WTG Midstream last year in a $3.3 billion deal that will add $0.04 per unit to its cash flow this year, increasing to $0.07 per unit by 2027. The company's growth investments give it the fuel to raise its payout each quarter. W.P. Carey recently raised its dividend payment to $0.89 per share ($3.56 annualized). The real estate investment trust (REIT) has a 5.7% yield at its current payout level and share price. The landlord has been increasing its payment every quarter since resetting its dividend in 2023 when it exited the office sector by selling and spinning off those properties. It raised its payment by $0.005 per share each quarter last year and has been hiking it by $0.01 per share each quarter this year. Two factors drive W.P. Carey's steadily rising dividend. The REIT invests in single-tenant industrial, warehouse, retail, and other properties secured by long-term net leases with built-in rent escalation. About half of its leases tie rental rates to inflation, while most of the remaining contracts raise rents at a fixed annual rate. These leases supply it with very stable and steadily rising rental income. In addition, W.P. Carey uses its post-dividend free cash flow, non-core assets sales, and balance sheet flexibility to buy additional income-producing properties secured by leases with built-in rental escalation. This strategy supplies it with a growing income stream to support its steadily rising dividend. Clearway Energy, Energy Transfer, and W.P. Carey have been raising their dividend payments each quarter. That's adding to their already lucrative income streams. It makes them ideal dividend stocks to buy for those who want to collect a very steadily rising stream of passive income. Before you buy stock in Energy Transfer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Energy Transfer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Matt DiLallo has positions in Clearway Energy, Energy Transfer, and W.P. Carey. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Want More Money? These 3 High-Yield Dividend Stocks Are on Track to Give You a Raise Every Single Quarter. was originally published by The Motley Fool
Yahoo
02-05-2025
- Business
- Yahoo
Got $5,000 to Invest? Buying This Nearly 6%-Yielding Dividend Stock Can Turn It Into Almost $300 of Easy Passive Income Each Year.
W.P. Carey owns a diversified portfolio of income-producing real estate. The REIT steadily invests money to grow its portfolio. Its rising cash flow allows it to pay a growing dividend. Investing money in income-generating assets is an easy way to start making some passive income. The more money you invest and the higher yield you earn on that investment, the more passive income you'll collect. W.P. Carey (NYSE: WPC) checks the high-yield box. At a nearly 6% yield, the real estate investment trust (REIT) pays about four times the income as the average dividend stock, based on the S&P 500's sub-1.5% dividend yield. It could turn a $5,000 investment into almost $300 of annual passive income at that rate. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » W.P. Carey owns a diversified portfolio of high-quality, operationally critical commercial real estate across North America and Europe. It has 1,614 properties, encompassing industrial, warehouse, retail, and various other types, secured by long-term net leases with built-in rent escalations. The REIT also owns 78 self-storage locations operated by others under management agreements. The REIT's net lease portfolio supplies it with stable and and growing rental income. This lease structure requires that tenants cover all of a property's operating expenses, including routine maintenance, real estate taxes, and building insurance. Half of its leases link rents to inflation, while 47% of the remaining contracts raise rents at a fixed rate. The remaining 3% use another mechanism, like a percentage of the property's revenue. As a result, the company's same-property annual base rent tends to rise at a low single-digit rate each year. W.P. Carey aims to pay out between 70% and 75% of its stable and growing cash flow in dividends. It retains the rest to invest in additional income-generating real estate. Rising rental income at its existing properties provides W.P. Carey with a nice growth base. The company complements rent growth by investing money to expand its portfolio. The REIT has spent the past few years on a major portfolio upgrade. It has sold or spun off its entire office portfolio. It also sold back a portfolio of self-storage properties to the operator and has jettisoned several other non-core properties. W.P. Carey has been recycling this capital back into higher-quality properties with better long-term rent growth potential from net leases with embedded fixed or inflation-linked rents. W.P. Carey invested $1.6 billion in new properties last year. The company plans to invest between $1 billion and $1.5 billion this year. It has already completed $448.6 million of deals and has another $120 million of development projects on track to wrap up construction this year. Meanwhile, it has several hundred million dollars of potential investments in the pipeline. That gives the company the confidence that it could invest capital toward the high end of its target range this year, with upside beyond the top end if market conditions improve. The landlord's dual growth drivers should enable it to steadily increase its dividend. While W.P. Carey reset the payment level following its exit from the office sector in 2023, it has been steadily rebuilding the dividend by raising it each quarter. It has increased its dividend by 2.9% over the past year. The company aims to grow its payout at around the same rate as its adjusted funds from operations (FFO), which was up 2.6% in the first quarter compared with the year-ago period. Investing in W.P. Carey makes it easy to start making passive income. The REIT owns a diversified real estate portfolio that produces steadily rising rental income. The company also invests money to expand its portfolio, providing it with additional sources of rising rental income. These features enable it to pay a lucrative and growing dividend to shareholders, allowing them to turn cash into passive income. Before you buy stock in W.P. Carey, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and W.P. Carey wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $610,327!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $667,581!* Now, it's worth noting Stock Advisor's total average return is 882% — a market-crushing outperformance compared to 161% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 28, 2025 Matt DiLallo has positions in W.P. Carey. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Got $5,000 to Invest? Buying This Nearly 6%-Yielding Dividend Stock Can Turn It Into Almost $300 of Easy Passive Income Each Year. was originally published by The Motley Fool
Yahoo
28-04-2025
- Business
- Yahoo
Want $1,000 Per Year in Reliable Dividend Income? Invest $17,300 in These 2 High-Yield Dividend Stocks
If you're concerned about having enough income after you retire, there are lots of options. Buying rental properties is a popular one, but finding tenants and keeping up with maintenance often requires more effort than many retirees have in mind. If dealing with contractors and tenants isn't your idea of a good time, I have great news. Real estate investment trusts, or REITs, are a terrific way for everyday investors to collect rent without owning any buildings themselves. REITs trade like stocks, but these specialized entities can legally avoid income taxes by distributing at least 90% of their profit to shareholders as dividends. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Realty Income (NYSE: O) and W.P. Carey (NYSE: WPC) are well-established REITs that offer an average yield of 5.8% at recent prices. That means $17,300 spread between them is enough to produce $1,000 in annual dividend income. Here's why they're great options for folks who want passive income they can rely on to grow steadily throughout their retirement years. Realty Income is a net lease REIT that finished 2024 with 15,621 properties in its portfolio. The vast majority of annual rent it receives comes from retail properties resilient to e-commerce trends, such as convenience stores, dollar stores, and pharmacies. At recent prices, it offers a 5.7% dividend yield. Realty Income's portfolio is well diversified. Its three largest tenants -- 7-Eleven, Dollar General, and Walgreens -- are responsible for just 10% of total rent. Troubled businesses like Walgreens illustrate how net lease REITs like Realty Income can produce steady gains for patient investors. The troubled pharmacy chain suspended its dividend this year and will most likely be acquired by a private equity firm. Despite the turmoil, we haven't heard a peep from Realty Income about the pharmacy chain missing any lease payments. Realty Income offers a monthly dividend payment that has risen steadily since the company's inception in 1969. In March, it raised its monthly dividend for the 130th quarter since becoming a publicly traded business in 1994. The past decade hasn't been a historically great time to own commercial real estate. By rinsing and repeating its time-tested net lease operation, though, Realty Income has been able to increase its dividend at a 3.9% annual rate since 2015. At recent prices, Realty Income offers a big 5.7% dividend yield, and steady growth at the usual pace shouldn't be too difficult. The REIT didn't enter the European net lease market until 2019, and this region is still brimming with opportunities. Realty Income and its peers account for less than 0.1% of the addressable market in that region. While Realty Income's dividend has only moved in one direction, W.P. Carey lowered its quarterly payout in 2023 to compensate for the spinoff of its office portfolio as Net Lease Office Properties. Dividend reductions aren't something REIT investors want to see, and they punished the stock severely. Adjusting its payout 19.7% lower to $0.86 per share in 2023 led to a dramatic stock market beatdown that the diversified net lease REIT hasn't completely recovered from. At recent prices, it offers a big 5.9% dividend yield. After spinning off its office portfolio, W.P. Carey quickly returned to raising its payout every quarter. The payout investors received in April was 3.5% higher than the one they got a year earlier. W.P. Carey's 1,555 property portfolio is arguably more diversified than Realty Income's. Its three largest tenants are a self-storage business called Extra Space Storage, a generic drug manufacturer called Apotex, and a business-to-business wholesaler in Italy named Metro. These top three tenants are responsible for just 7.1% of annualized rent. Sometimes, net lease REITs buy or develop properties first and find tenants later. Mostly, though, they function as lenders through sale-leaseback transactions. By investing in properties that its tenants already use, W.P. Carey's occupancy rate hasn't dipped below 98% since 2011. Being a big, well-established REIT gives a huge cost advantage to W.P. Carey. During the fourth quarter of 2024, it borrowed 600 million Euros at just 3.7% for 10 years. With access to inexpensive capital and a European market ripe for sale-leaseback financing, there's a good chance this REIT can keep raising its dividend payout throughout your retirement years. Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Realty Income wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $680,390!* Now, it's worth noting Stock Advisor's total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 21, 2025 Cory Renauer has positions in W.P. Carey. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Extra Space Storage. The Motley Fool has a disclosure policy. Want $1,000 Per Year in Reliable Dividend Income? Invest $17,300 in These 2 High-Yield Dividend Stocks was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
28-04-2025
- Business
- Yahoo
Want $1,000 Per Year in Reliable Dividend Income? Invest $17,300 in These 2 High-Yield Dividend Stocks
If you're concerned about having enough income after you retire, there are lots of options. Buying rental properties is a popular one, but finding tenants and keeping up with maintenance often requires more effort than many retirees have in mind. If dealing with contractors and tenants isn't your idea of a good time, I have great news. Real estate investment trusts, or REITs, are a terrific way for everyday investors to collect rent without owning any buildings themselves. REITs trade like stocks, but these specialized entities can legally avoid income taxes by distributing at least 90% of their profit to shareholders as dividends. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Realty Income (NYSE: O) and W.P. Carey (NYSE: WPC) are well-established REITs that offer an average yield of 5.8% at recent prices. That means $17,300 spread between them is enough to produce $1,000 in annual dividend income. Here's why they're great options for folks who want passive income they can rely on to grow steadily throughout their retirement years. Realty Income is a net lease REIT that finished 2024 with 15,621 properties in its portfolio. The vast majority of annual rent it receives comes from retail properties resilient to e-commerce trends, such as convenience stores, dollar stores, and pharmacies. At recent prices, it offers a 5.7% dividend yield. Realty Income's portfolio is well diversified. Its three largest tenants -- 7-Eleven, Dollar General, and Walgreens -- are responsible for just 10% of total rent. Troubled businesses like Walgreens illustrate how net lease REITs like Realty Income can produce steady gains for patient investors. The troubled pharmacy chain suspended its dividend this year and will most likely be acquired by a private equity firm. Despite the turmoil, we haven't heard a peep from Realty Income about the pharmacy chain missing any lease payments. Realty Income offers a monthly dividend payment that has risen steadily since the company's inception in 1969. In March, it raised its monthly dividend for the 130th quarter since becoming a publicly traded business in 1994. The past decade hasn't been a historically great time to own commercial real estate. By rinsing and repeating its time-tested net lease operation, though, Realty Income has been able to increase its dividend at a 3.9% annual rate since 2015. At recent prices, Realty Income offers a big 5.7% dividend yield, and steady growth at the usual pace shouldn't be too difficult. The REIT didn't enter the European net lease market until 2019, and this region is still brimming with opportunities. Realty Income and its peers account for less than 0.1% of the addressable market in that region. While Realty Income's dividend has only moved in one direction, W.P. Carey lowered its quarterly payout in 2023 to compensate for the spinoff of its office portfolio as Net Lease Office Properties. Dividend reductions aren't something REIT investors want to see, and they punished the stock severely. Adjusting its payout 19.7% lower to $0.86 per share in 2023 led to a dramatic stock market beatdown that the diversified net lease REIT hasn't completely recovered from. At recent prices, it offers a big 5.9% dividend yield. After spinning off its office portfolio, W.P. Carey quickly returned to raising its payout every quarter. The payout investors received in April was 3.5% higher than the one they got a year earlier. W.P. Carey's 1,555 property portfolio is arguably more diversified than Realty Income's. Its three largest tenants are a self-storage business called Extra Space Storage, a generic drug manufacturer called Apotex, and a business-to-business wholesaler in Italy named Metro. These top three tenants are responsible for just 7.1% of annualized rent. Sometimes, net lease REITs buy or develop properties first and find tenants later. Mostly, though, they function as lenders through sale-leaseback transactions. By investing in properties that its tenants already use, W.P. Carey's occupancy rate hasn't dipped below 98% since 2011. Being a big, well-established REIT gives a huge cost advantage to W.P. Carey. During the fourth quarter of 2024, it borrowed 600 million Euros at just 3.7% for 10 years. With access to inexpensive capital and a European market ripe for sale-leaseback financing, there's a good chance this REIT can keep raising its dividend payout throughout your retirement years. Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Realty Income wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $680,390!* Now, it's worth noting Stock Advisor's total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 21, 2025 Cory Renauer has positions in W.P. Carey. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Extra Space Storage. The Motley Fool has a disclosure policy. Want $1,000 Per Year in Reliable Dividend Income? Invest $17,300 in These 2 High-Yield Dividend Stocks was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
25-04-2025
- Business
- Yahoo
Got 10 Years and $1,000? 3 Dividend Stocks That Are High-Yield Bargains.
The market is volatile right now, but that doesn't mean you should run and hide. The key is to stick with well-run companies and to own them for the long term. If you have $1,000, or more, to put to work and can afford to sit tight for 10 years, or longer, there are good companies on sale that you might want to look at adding to your portfolio. Three top options are W.P. Carey (NYSE: WPC), Chevron (NYSE: CVX), and PepsiCo (NASDAQ: PEP). Here's a primer on each one. The bad news first with real estate investment trust (REIT) W.P. Carey: It reset its dividend in 2024 after the strategic decision to exit the office sector, which made up around 16% of its rents. That move strengthened the business, which is now focused on warehouse, industrial, and retail properties. But the hit to the rent roll was too high to avoid lowering the dividend. The quarter after the reset, however, the dividend got right back onto the quarterly increase cadence that existed before the reset. That shows that W.P. Carey is operating from a position of strength, not weakness. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » That strength includes the opportunity to invest the cash raised from the office exit. It bought assets throughout 2024, but a lot were acquired in the back half of the year. That means that these assets will start to benefit from the top and bottom lines in 2025. W.P. Carey's lofty 5.8% dividend yield is well supported and highly likely to keep growing throughout the year. Note that the average REIT yield is only 4%, so buying W.P. Carey today gets you a well-above-peers yield backed by a well-positioned and still-growing landlord. Integrated energy giant Chevron is trying to buy peer Hess, but Hess' partnerships with other energy companies are causing problems. Chevron's dealings with Venezuela have also become a hot potato in the current global upheaval around tariffs. Investors have punished the stock, leaving it with a 5% yield compared to a 3.8% yield for its closest competitor (and Hess partner) ExxonMobil. The average energy stock, meanwhile, has a yield of just 3.1% or so. The long-term view here, however, is what investors should focus on. First, despite the inherent volatility of the energy sector, Chevron has increased its dividend annually for 38 years. Meanwhile, it has a rock solid balance sheet, with a debt-to-equity ratio of roughly 0.15x. This gives it the financial wherewithal to deal with all the issues it's facing, including low oil prices, while continuing to invest in its business and pay its dividend. Yes, Chevron is facing headwinds, but if you think in decades, this is an opportunity to buy a very well-run energy company while it looks relatively cheap. Beverage, snack, and packaged food giant PepsiCo's growth got a big boost coming out of the coronavirus pandemic. The inflation during that period allowed the company to push through outsized price increases. It can't do that anymore, and its growth has slowed. On top of that, the salty snack category, where PepsiCo is the top competitor, is weak today. As if those two facts weren't enough, food companies are under pressure from a push toward healthier foods and lifestyles. PepsiCo currently has a historically high yield of around 3.8%. PepsiCo is a Dividend King, which means it has increased its dividend annually for at least five decades. It has survived hard times before while continuing to reward investors well. In fact, it is already taking steps to get its business back on solid ground, buying up-and-coming brands Siete (a completed deal) and Poppi (a still pending deal). Siete adds in-demand Mexican American fare, while Poppi is a health-conscious beverage option. It may take a little while for PepsiCo to turn things around, but with the foundation for future growth already being laid down, it is highly likely that this globally diversified consumer staples giant will survive and thrive over the long term. It's hard to buy stocks when Wall Street looks like it's going haywire. Geopolitical upheavals don't make things any easier. But W.P. Carey, Chevron, and PepsiCo all appear attractively priced today. More importantly, they are all well-run companies that have survived hard times before. If you have some money to put to work and plan to hold for a decade or more, history suggests buying one, or all, of these dividend stocks will work out well. Before you buy stock in Chevron, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Chevron wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $561,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $606,106!* Now, it's worth noting Stock Advisor's total average return is 811% — a market-crushing outperformance compared to 153% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 21, 2025 Reuben Gregg Brewer has positions in PepsiCo and W.P. Carey. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy. Got 10 Years and $1,000? 3 Dividend Stocks That Are High-Yield Bargains. was originally published by The Motley Fool Sign in to access your portfolio
