Tuesday, December 1, 2015

Recent Transfer: W.P. Carey, Inc.


Founded in 1973 and based in New York, W.P. Carey, Inc. (NYSE:WPC) is an independent equity REIT (real estate investment trust) engaged in providing long-term sale-leaseback and build-to-suit financing for companies. WPC primarily invests in commercial properties that are generally triple-net leased to single corporate tenants including office, warehouse, industrial, logistics, retail, hotel, R&D, and self-storage properties.

I'm proceeding with the transfer of stocks from my portfolio at Scottrade to DivGro. So far, I've transferred Coca Cola (NYSE:KO), Proctor & Gamble (NYSE:PG), Kimberly-Clark (NYSE:KMB), AbbView (NYSE:ABBV) and Dominion Resources (NYSE:D).

So far, these transfers have added $444.53 to DivGro's projected annual dividend income.

I bought 40 shares of WPC in two lots, first in August last year and then in July this year. The average initial yield on cost (YoC) of these buys are 5.48%. Since my first buy, WPC has increased its dividend several times, so now my average YoC is 5.96%.

With this transfer, DivGro's projected annual dividend income increases by $159.20 and I'm adding $151.80 of past dividend income. 

Transactions
2014-08-14 Bought: 30 shares of WPC at $68.71 per share: $ 2,061.40
2014-10-15 Dividend on 30 shares at 94.00¢ per share:  $ 28.20
2015-01-15 Dividend on 30 shares at 94.00¢ per share:  $ 28.50
2015-04-15 Dividend on 30 shares at 95.25¢ per share:  $ 28.58
2015-07-15 Dividend on 30 shares at 95.40¢ per share:  $ 28.62
2015-07-07Bought: 10 shares of WPC at $61.18 per share: $ 611.77
2015-10-15 Dividend on 40 shares at 95.50¢ per share:  $ 38.20
                                                                
 Total Capital Invested $ 2,673.17

Total Dividends Received:$ 151.80

The following chart shows a 2-year history of WPC's share price and indicates when I bought shares. Right now, I have an annualized loss of 1%, but it looks like WPC's share price is starting to improve again.
Source: Scottrade

Why WPC?


WPC is a Dividend Contender with an 18-year track record of paying and raising dividends. The stock currently yields more than 6%. Here are some other reasons I like WPC and why I decided to transfer the shares to DivGro:
  1. WPC has a 10-year dividend growth rate of 7.5%. 
  2. Recent increases have been double digit percentage increases (1-year: 13.7%; 3-year: 19.2%).
  3. The company is well-diversified with income drawn from industrialized nations around the globe.
  4. Most of WPC's revenue growth is lock in with long-term leases and debt due dates are nicely spread out. 
  5. The company reported solid earnings for the third quarter of 2015. AFFO (adjusted funds from operations) is $1.19 per share, and 2015 AFFO guidance is $4.83 to $4.97 per share. In comparison, the annualized dividend is $3.82 per share. 
Do you own shares of WPC? Do you think WPC is a good dividend growth prospect? Please share your comments below.

6 comments :

  1. Love WPC! As seen by the fact that my portfolio is 20% WPC. :). It's got a great history and great yield.

    ReplyDelete
    Replies
    1. That's a rather big exposure to a single stock... but, as you say, great history and yield. I'm glad to add the stock to DivGro and continue to reap benefits from its global exposure. I'm sure you're aware of it, but there's talk of a possible spin-off in the future. It would be interesting to see what management decides to do.

      Delete
  2. We don't current own shares in WPC but it is definitely on our watch list. Love the growth rate and love the 6% plus yield WPC currently offers. At current prices, I think WPC is a great long term buy.

    Keep up the great work FerdiS! AFFJ

    ReplyDelete
    Replies
    1. Thanks, AFFJ -- I think its worth a look. Note my reply to Adam above, though. WPC could be spinning-off or splitting up in the near future. I'm going to hang on and see what happens...

      Delete
  3. Don't own it, but certainly looks like a good buy! I have other REITs under my radar too, like RioCan and Boardwalk.

    Cheers!

    Mike

    ReplyDelete
    Replies
    1. I'm not too familiar with RioCan and Boardwalk, but thanks for mentioning. I'll take a look. WPC has a great dividend growth history and yields about 6%, so its a good option, if you don't mind the recent spin-off talk.

      Delete

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