Today's Shrewdest Dividend-Paying Equity to Invest In
In the realm of real estate investment trusts (REITs), two names that consistently stand out are Realty Income and W.P. Carey. Both are renowned for their focus on net lease properties, a model that offers a reliable tenant, a low-maintenance property, and a long lease – a win/win arrangement for all parties involved.
W.P. Carey, with its primary focus on real estate investment and management, currently manages approximately 1,600 properties, while Realty Income boasts an impressive portfolio of over 16,600 properties, making it the largest net lease REIT. However, both REITs share a similar dividend yield, hovering around 5.5%.
One of the key differences between the two lies in their dividend history. While Realty Income has increased its dividend annually for three decades, W.P. Carey resumed its quarterly dividend increases after a reset in 2023, following a tradition of annual dividend growth for 24 years prior to the reset.
In 2023, W.P. Carey made a strategic decision to exit the office property niche due to the size of its office portfolio. This move, although tough, is expected to benefit shareholders in the long run, as the company is now focusing on industrial properties and warehouses, which are likely to see more benefit from reshoring activity in the years ahead.
The cash raised from the office property exit is being used by W.P. Carey to acquire more industrial, warehouse, and retail properties. On the other hand, Realty Income, with its larger market cap, has easier access to capital markets due to its size.
When it comes to financial performance, W.P. Carey's adjusted funds from operations (FFO) per share went up 6% in the first half of 2025, compared to Realty Income's 1% increase.
Despite Realty Income's historical dividend growth, some analysts argue that W.P. Carey could be the smarter buy at the current moment, given its strategic focus and growth potential. However, the smartest decision might be to invest in both REITs, as their portfolios complement each other – Realty Income with its retail focus and W.P. Carey with its industrial and warehouse assets.
For those interested in the details of W.P. Carey's dividend data, it can be found on YCharts.
