Generating $100 in Monthly Passive Income Through High-Yield REITs: A Strategic Comparison of W. P. Carey and Alexander & Baldwin

Investors seeking reliable passive income often turn to real estate investment trusts (REITs) for their steady dividends and long-term growth potential. Two prominent names in this space—W. P. Carey (WPC) and Alexander & Baldwin (ALEX)—offer distinct advantages for income-focused portfolios. This article evaluates their dividend yields, expense structures, and capital efficiency to determine the optimal path for generating $100/month in passive income.

Dividend Yields: WPC Edges Out ALEX

As of August 2025, W. P. Carey boasts a 5.5% dividend yield, with an annualized payout of $3.60 per share. This represents a 3.4% increase from 2024 and reflects the REIT's disciplined approach to capital deployment and tenant diversification. In contrast, Alexander & Baldwin offers a 4.97% yield, slightly below WPC but still above its five-year average of 4.20%. While both REITs provide attractive returns, WPC's higher yield reduces the capital required to reach the $100/month threshold.

Capital Requirements: WPC's Efficiency Shines

To generate $1,200/year ($100/month), investors must calculate the number of shares needed based on each REIT's dividend per share and current stock price.

• W. P. Carey:
• Quarterly dividend: $0.900/share
• Annual dividend: $3.60/share
• Required shares: $1,200 ÷ $3.60 = 333.33 shares

• At a stock price of $65.60/share (August 2025), total investment: $21,867.

• Alexander & Baldwin:

• Quarterly dividend: $0.2250/share
• Annual dividend: $0.90/share
• Required shares: $1,200 ÷ $0.90 = 1,333.33 shares
• At a stock price of $18.08/share, total investment: $24,133.

WPC's lower capital requirement makes it more efficient for income-focused investors. However, ALEX's lower share price could appeal to those seeking to diversify across multiple REITs.

Expense Structures and Operational Efficiency

While REITs don't use expense ratios like mutual funds, their operational costs impact net income and dividend sustainability.

• W. P. Carey reported G&A expenses of $99–102 million and property expenses of $50–54 million in 2025. Despite these figures, its $1.7 billion liquidity and 98.2% occupancy rate support strong cash flow.
• Alexander & Baldwin spent $7.0 million on SG&A in Q2 2025, a 4.7% reduction from 2024. Its 95.8% occupancy and $307.6 million liquidity also underscore operational resilience.

Both REITs manage costs effectively, but WPC's higher dividend coverage (fueled by its $4.87–$4.95 AFFO per share guidance) provides a margin of safety for dividend sustainability.

Strategic Allocation: Balancing Yield and Growth

For income-focused investors, W. P. Carey is the more efficient choice due to its higher yield and lower capital requirement. However, ALEX's strong growth in industrial real estate (e.g., new developments in Hawaii) and disciplined balance sheet (3.3x net debt/EBITDA) offer long-term appreciation potential. A hybrid approach—allocating 60% to WPC for income and 40% to ALEX for growth—could optimize both stability and capital gains.

Conclusion: Prioritize Efficiency, Hedge with Growth

To generate $100/month in passive income, W. P. Carey requires $21,867 in capital, while Alexander & Baldwin needs $24,133. Given WPC's superior yield and dividend history, it is the more efficient option for income-focused investors. However, ALEX's strategic developments in Hawaii and disciplined cost management make it a compelling satellite holding. Investors should prioritize WPC for immediate income and pair it with ALEX to hedge against market volatility and capture long-term growth.

By aligning capital allocation with these metrics, investors can build a resilient, high-yield portfolio tailored to their income goals.