WPC a new selection from the Buffett Investment Strategy
Posted on Tue, Nov 15, 2011
Investment management and real estate ownership firm W.P. Carey and Company, has recently become a top 10 pick of our investment strategy inspired by Warren Buffett. Thanks in large part to very health margins, an EPS growth rate of over 10%, and generous yield of over 5%; this stock looks attractive to nearly every investor looking for safe current income. However, what makes this a Buffett stock is the aforementioned statistics combined with the fact that WPC trades at just over 12 times earnings. No other U.S. listed company that can boast those kind of statistics.
Advanced investors and traders may simply see a stock trading at just 2% below it's all time high and question if the value has already been discovered. However, even after a recent rally in shares of WPC, the stock still pays a quarterly dividend of over $.50; and considering the very manageable payout ratio, dividend increases look likely to continue. Investors anticipating a pull back resulting from overall market conditions may want to stay patient and place bids around the $38 level. However, any market rally is likely to reward the early buyers and send WPC to new all-time highs.
The Buffett Diversified Yield is and investing strategy inspired by the investment sytle of legendary investor Warren Buffett. This strategy has produced an average return of nearly 15% over the past 25 years.
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