O vs WPC: Which REIT is the Best Dividend Stock?

O vs WPC: Which REIT is the Best Dividend Stock?

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In today’s video we’re gonna be comparing two different real estate investment trusts, which are Realty Income and W. P. Carey. These are stocks that I talk about on a regular basis on this channel and I am a shareholder of both. These companies are powerhouses within the REIT sector, which has really seen an increase of inflows during this period of high inflation. And the honest truth is you can’t go wrong with either pick, both companies have been excellent performers. If you’re wondering maybe which one should receive the most attention in your portfolio, we’re gonna look at a wide range of different metrics and financials and compare both companies. We’ll also determine which one might be the best depending on what you’re looking for in your dividend portfolio.

First up we have W. P. Carey, ticker WPC. This REIT ranks among the largest net lease REITs with an enterprise value of approximately $18 billion and a diversified portfolio of commercial real estate that includes 1,428 net lease properties. W. P. Carey’s strategy includes owning properties that they deem as being operationally critical, which includes self-storage properties, government offices and K-12 schools. For nearly five decades, the company has invested in high-quality single-tenant industrial, warehouse, office, retail and self-storage properties subject to long-term net leases with built-in rent escalators. A large portion of their real estate is located outside the U.S. with roughly 34.9% being located in Europe and other continents.
 
Then we have Realty Income, ticker O, which is a REIT that’s also known as the monthly dividend company. For more than 52 years Realty Income has paid monthly dividends to shareholders, with 100 consecutive quarterly increases. Since being publicly listed on the New York Stock Exchange, this company has provided a compound annual total return of 14.4%. They’ve also been able to provide a 4.4% compound annual dividend growth rate since being on the exchange. Realty Income invests in a wide range of different industries including grocery, dollar and convenience stores as well as restaurants and drug stores.

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