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W. P. Carey Inc. Message Board

  • pruman98 pruman98 Nov 17, 1999 8:37 AM Flag

    going down

    I see this stock is heading down again.
    A
    stock that gives a 10% dividend yield and is managed to
    increase this dividend with inflation, in theory sounds
    like a great invetment. Is the market disagreeing? Are
    investors doubting the ability of Carey to deliver on their
    goals?
    I would appreciate any feedback on this issue.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Several years ago we were involved in an LP such
      as CDC, before its conversion to a stock fund, which
      was converted to a stock fund. Upon the conversion,
      the dividends were cut, the stock price dropped as
      has CDC and the value of investment went from $16 to
      $8 with the did cut to 1/4 of what it was. Hope this
      does not happen again.

    • Pruman98 ... I certainly agree with your
      observation .. and have been tempted to dump CDC. But I am
      inhibited by thinking back to my reassons for buying it:
      Basically, my thought was that this would be a well-managed,
      quite conservative portion of my portfolio which would
      generate a high yield and have the promise of modest
      incremental growth in that dividend over time. I've seen
      nothing to negate that thinking.

      But I'm more than
      a little distressed by Mr. Market. I think that you
      have to ask yourself whether the (I hope) temporary
      diminution in the market price is a problem for you. It
      certainly is ... if you bought for capital growth; but it's
      not ... if you bought for income.

      That's a
      long way of saying, I guess, "It looks as though the
      business is intact. It's simply not popular!"

      • 1 Reply to tomxp
      • Think both your comments are valid.. It seems as
        though CDC has the capability to grow, but instead
        provides a good return. We have long since decided to hang
        in there for the returns and keep other investments
        for growth. When the stock gets down to what we paid
        and the dividends decrease, then we will get rid of
        it even at a loss. This happened on another real
        estate investment we made some years back. Seems as
        though you can't have the best of both worlds..growth
        and dividends.

 
WPC
65.36-0.09(-0.14%)Oct 24 4:06 PMEDT

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