Is W. P. Carey Inc. (WPC) The Best High Dividend Stocks Under $100?

W. P. Carey Inc. (WPC) is a prominent net lease REIT with a well-diversified portfolio of high-quality, operationally critical commercial real estate, including 1,430 net lease properties covering approximately 172 million square feet and a portfolio of 78 self-storage operating properties. With offices in New York, London, Amsterdam, and Dallas, the company remains focused on investing primarily in single-tenant, industrial, warehouse, and retail properties located in the U.S. and Northern and Western Europe, under long-term net leases with built-in rent escalations. WPC's strong financial performance, consistent dividend history, and attractive valuation make it an appealing choice for income-oriented investors seeking high-dividend stocks under $100.



WPC's Dividend Yield and Growth
WPC offers a high dividend yield of 6.37%, which is higher than the average of the bottom 25% of dividend payers in the US market (2.22%) and lower than the average of the top 25% of dividend payers in the Real Estate sector in the US market (11.91%). The company's dividend growth rate over the past year was 1.73%, while the 3-year and 5-year growth rates were -5.93% and -3.29%, respectively. Despite the recent reduction in dividend growth, WPC's dividend history demonstrates a 24-year streak of dividend increases before the recent cut, indicating a strong commitment to maintaining and growing its dividend payouts.

WPC's Financial Performance and Valuation
WPC's strong financial performance is reflected in its high margins before depreciation, amortization, and taxes, as well as its high margins returned by the company. The company's EBITDA/Sales ratio is relatively high, indicating that it generates significant cash flows from its operations. WPC's valuation metrics, such as its Enterprise Value/Revenue and Enterprise Value/EBITDA, are competitive with other companies in the North American REITs Industry. Additionally, the company's forward price-to-earnings ratio is 20.95, which is lower than the industry average of 30.10, suggesting that WPC may be undervalued compared to its peers.



WPC's Dividend Sustainability and Payout Ratio
WPC's dividend sustainability is supported by its strong financial health, with a low payout ratio of 0.00 and a high cash flow. The company's low payout ratio indicates that it is not currently paying out any of its earnings as dividends, suggesting that it has a strong financial position and can afford to maintain its dividend payments. WPC's high cash flow provides the company with the necessary funds to cover its dividend payments and other expenses, ensuring the sustainability of its dividend payouts.

WPC's Dividend Payout History and Growth
WPC has a history of consistent dividend payments and growth, with a 24-year streak of dividend increases before the recent reduction. The company's annual dividend per share was $3.49 in 2024, representing a 2.30% increase from the previous year. WPC's dividend growth rate over the past year was 1.73%, while the 3-year and 5-year growth rates were -5.93% and -3.29%, respectively. Although WPC's dividend growth rate has been negative in recent years, the company's recent transaction volumes and strategic shifts suggest that it may be poised for future growth.

WPC's Dividend Yield and Payout Ratio Compared to Peers
WPC's dividend yield of 6.32% is higher than the average of the bottom 25% of dividend payers in the US market (2.22%) and lower than the average of the top 25% of dividend payers in the Real Estate sector in the US market (11.91%). WPC's payout ratio of 0.00 is lower than the average of the bottom 25% of dividend payers in the US market (0.00) and lower than the average of the top 25% of dividend payers in the Real Estate sector in the US market (100%). WPC's dividend yield and payout ratio indicate that the company offers a competitive income stream compared to its peers.

WPC's Dividend Growth Potential and Bullish Case
WPC's Dividend Growth Potential Score (DGPS) is only moderate, indicating limited growth potential. However, its Dividend Sustainability Score (DSS) is average (39.14%), suggesting that the company may sustain its dividends. WPC's bullish case is supported by its high dividend yield, low payout ratio, and strong financial health. The company's dividend growth potential may be limited, but its dividend sustainability and attractive valuation make it an appealing choice for income-oriented investors seeking high-dividend stocks under $100.



In conclusion, W. P. Carey Inc. (WPC) is a strong contender for the title of the best high-dividend stock under $100, given its high dividend yield, strong financial performance, attractive valuation, and dividend sustainability. Although the company's dividend growth rate has been negative in recent years, its recent transaction volumes and strategic shifts suggest that it may be poised for future growth. WPC's dividend history, financial performance, and valuation metrics make it an appealing choice for income-oriented investors seeking high-dividend stocks under $100.