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5.6% Payer Boasts Stability AND Growth 

 April 23, 2022

One down, two to finish.

The Nasdaq Composite is the only major U.S. index in the bear market after falling more than 20% from recent highs.

The S&P 500 and Dow Jones have a little more to go. But it’s already feels Like a bear market out there.

And the most amazing aspect of this current sale is that there is nowhere to hide. Stocks are crushed … Bonds are crushed … and when you take inflation into account, even cash is crushed.

In such a market, income Investors A balance must be struck between the introduction of current income and the protection of capital. You need something that will continue to pay the bills without worrying about our portfolios.

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However, consider the Diversified Retail Real Estate Investment Fund (REIT) WP Carey Inc. (Symbol: WPC).

WP Carrie has been through it all

WP Carey has been in business for almost half a century. It survived booms, misses, inflation, deflation and everything in between. It owns a portfolio of over 1,300 properties, across 356 tenants totaling more than 150 million square feet of space.

The combination of these assets is what attracts me.

WPC is best known as a REIT retailer, but retail properties make up only about 17% of its rents. Industrial assets and warehouses make up about half of the portfolio. These assets tend to be more protected from recession, and more importantly, “Amazon-resistant.” The Internet economy requires huge amounts of storage and light industrial space, which is what WPC provides.

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WPC WPC Dividend and Power Rating

Oh, and it also distributes a fantastic 5.5% dividend. And if you’re wondering how WPC is keeping up with the rise in prices, it’s raised its dividend every quarter since the beginning of 2010.

WPC: Raises serial dividend

Source: WP Carey.

It’s not every year, mind you. It’s every quarter. WPC has reliably raised its dividend four times a year for more than a decade.

WPC Rates a “Bulls” 67In our stock power rating system.

WP Carey Stock Rating 051022 WPC

WP Carey’s stock strength rating on May 11, 2022.

This is good, but I’m more interested in the personal factors that drive this ranking. WPC ranks well where I want it to be in this environment.

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Volatility WPC Ratings an 89 On our volatility factorThat is, its Less volatile That all shares in our universe except 11%. This is critical in the bear market, where you win if you do not lose.

Avoiding big losses gives you flexibility. You can sell and maybe buy stock declines of other stocks that have fallen stronger … while collecting dividends along the way.

amplitude – Not surprisingly at all, WPC is well rated here as well The momentum factor in 78. With the market plummeting, low volatility stocks are gaining momentum by not rolling over on us.

growth – Do not throw the baby with the bath water in the bear market.

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Currently, growth stocks are being written off. But buying “cigarette butts,” or cheap stocks that have long since gone through their years of growth, is also not a great long-term strategy.

You need growth because that’s what ultimately fuels stock price increases and dividend increases. And WPC Super Solid Ranking 78 On our growth factor.

quality The REIT Fund is not known for high-quality factor ratings, as bizarre accounting pushes reported profit margins and debt levels. This is normal in real estate, but it makes REIT look very leveraged.

Despite these disabilities, WPC is still in the middle of a package with a Rating 55 on our quality factor. It’s solid.

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value– As was the case with quality, the REIT fund is also punished for our value factor. WPC Rates a 33 Here. I’m good with it because it’s a solid reed with low volatility with a great dividend. These rarely go on sale.

size – WPC is also a large REIT with a market value of almost $ 15 billion. It ranks a 13 on our size coefficient. But it’s okay because stability is key in the bear market. This is where bigger companies shine.

The Bottom Line: I do not know when this bear market will pass its. It’s OK.

WPC is a dividend workhorse that is supposed to get you through this difficult time while continuing to throw in a healthy stream of growing income payments.

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To ensure profits,

Charles Saysmore_Sig

Charles Seismore, co-editor, Green Zone Fortunes

Charles Sizemore Is the co – editor of Green Zone Fortunes And specializes in income and retirement issues. He is also a frequent guest on CNBC, Bloomberg and Fox Business.

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