Many income investors hold real estate investment trusts, or REITs, in high regard.
There is a good reason for this, because REITs are excellent sources of income. REITs typically provide dividend yields around twice as high as the S&P 500 Index—and even more in some cases.
W.P. Carey (WPC) and Realty Income (O) are two high-quality REITs. Both are Dividend Achievers, a group of 272 stocks with 10+ years of consecutive dividend increases.
You can see the full Dividend Achievers List here.
Realty Income is a legend among dividend stocks. It calls itself The Monthly Dividend Company, because it pays dividends each month, rather than the more traditional quarterly dividend schedule.
And, it has declared 556 consecutive common stock monthly dividends throughout its 47-year operating history. It has increased the dividend 88 times since its IPO in 1994.
But when it comes to dividends, W.P. Carey is no slouch. In fact, it has a much higher dividend yield than Realty Income, and a cheaper valuation as well.
These qualities could make W.P. Carey the better stock to buy between these two REIT Dividend Achievers.
Business Overview
Both W.P. Carey and Realty Income have strong business models, with high occupancy rates, diversified tenants, and long lease agreements.
W.P. Carey operates a diversified property portfolio across several industries which include retail, transportation, health care, and automotive. Its properties primarily include office, industrial, warehouse, and retail facilities.
Source:Â Third Quarter Earnings Presentation, page 12
The company operates in 19 countries around the world. Its geographic breakdown is as follows:
- U.S. (63% of assets)
- Europe (34% of assets)
- Other (3% of assets)
The ‘other’ geographic segment includes assets in Australia, Canada, Japan, Malaysia, Mexico, and Thailand.
In all, W.P. Carey owns $12 billion of assets under management, spread across more than 900 properties.
