If you are employed full time, as about 127 million Americans are, each of you owe $163 thousand dollars (above and beyond the taxes you are already paying) to square up America’s accounts. You can quadruple or quintuple that debt per employee if we are to account for America’s massively unfunded liabilities. And to gauge your capability to do so, I take total disposable personal income (what remains after taxation from all sources of personal income) and divide by the same 127 million full time employees…on average you each take home $115 thousand dollars (despite the fact that the median household income in America is about $60 thousand…yes, the top earners are skewing the average just a tad bit higher)?!?
February 23, 2018
We took a severe hit on MIC yesterday. Bad news.
-The Company is not failing or going into bankruptcy. That’s the good news.
-The dividends are cut and it will take at least a year to get their business back on track. That’s the bad news.
So that is the abbreviated version of the story…….we are not willing to take the loss by selling the shares and will HOLD this position. We will collect the dividends with the assumption the stock price will head back up….altho slowly.
Not a week goes by that we don’t see another glowing report on WP Carey WPC. As mentioned before we own the corporate bond. But with a 7% dividend we have been watching the stock for a BUY.
BUT WPC has been tanking and the technicals are telling us to stay away for now. In the near future this may be a good buy.
WPC has ranged (over the last five years) between $53 and $73 with the current price at $60. We may start to see a turn-around very soon. We are also watching IRM.
W.P. Carey Inc. (WPC) is a top-shelf commercial property REIT that I consider to be a “Strong Buy” on the drop. The real estate investment trust has consistently raised its dividend payout in the last twenty years, the dividend is covered by cash flow, W.P. Carey has a conservative AFFO payout ratio, and shares are cheap after the most recent stock market correction. W.P. Carey’s entry dividend yield has spiked to 6.7 percent, which is not a red flag in my opinion.
Stocks, including REITs, were in for a rough 2018 so far as strong employment data triggered a major sell-off in the stock market. Investors’ fears: Wage growth points to higher inflation, which in turn could prompt the U.S. Federal Reserve to raise interest rates at a faster clip in 2018. The Fed has guided for three interest rate hikes this year, but may lift rates faster and more often if inflation picks up steam throughout the year. The consequence: Bond yields have been rising, which often hurts dividend-paying stocks (bond yields have become more attractive relative to stock yields).
The sell-off has weighed on all stocks, but especially dividend-paying stocks including W.P. Carey. Year-to-date, W.P. Carey’s shares have dropped ~13 percent.