Key Takeaways
- W. P. Carey yields 5.9% and Realty Income 5.7%, and both raised their 2026 AFFO guidance with their third-quarter results.
- W. P. Carey paid out 73% of its fiscal 2025 AFFO against Realty Income’s 75%, and analysts expect both ratios to ease in 2026.
- Realty Income has raised its dividend for over 32 consecutive years, while W. P. Carey’s dividend fell between fiscal 2022 and fiscal 2024 before rising again.
- W. P. Carey trades at 12x forward AFFO and Realty Income at 13x.
W. P. Carey (WPC) raised its 2026 AFFO guidance with its third-quarter results on Oct. 27, and Realty Income (O) raised its own on Nov. 2. Any retiree hunting for income has reason to look at both: W. P. Carey yields 5.9%, and Realty Income yields 5.7%.
They get there differently, though. W. P. Carey pays the bigger check, once a quarter. Realty Income pays monthly and has raised its dividend for over 32 consecutive years. So which is the better dividend stock?
| Metric | W. P. Carey (WPC) | Realty Income (O) |
|---|---|---|
| Dividend yield | 5.9% | 5.7% |
| Annual dividend | $3.80, paid quarterly | $3.26, paid monthly |
| Dividend growth, fiscal 2020-2025 | -2.8% a year | 2.9% a year |
| AFFO payout ratio, fiscal 2025 | 73% | 75% |
| AFFO payout ratio, fiscal 2026 consensus | 71% | 73% |
| Net debt/EBITDA (LTM) | 5.5x | 5.7x |
| Interest coverage (LTM) | 3.3x | 2.4x |
Source: TIKR, Nov. 5, 2026.
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W. P. Carey is growing again
W. P. Carey’s third quarter gave it plenty to work with. AFFO per share rose 6.4% from a year earlier to $1.33, and management now expects $5.23 to $5.29 for 2026, 5.8% growth at the midpoint. On Sept. 18, it raised its quarterly dividend 4.4% to $0.950 a share.
That raise follows a rough patch. The dividend rose every year from fiscal 2016 to fiscal 2022, then fell from $4.24 a share to $3.49 by fiscal 2024, while AFFO per share stayed between $4.70 and $5.39:
Coverage is in much better shape now. The dividend took 72.8% of AFFO in fiscal 2025, down from 88.0% in fiscal 2020, and analysts expect 71% in fiscal 2026. That’s a well-covered REIT dividend.
W. P. Carey also plans to keep buying property without leaning on shareholders. CEO Jason Fox said on the third-quarter call: “We’re confident that we can fund deals in 2027 without needing to raise new equity.”
The main risk is refinancing at higher rates: a €500 million Eurobond matures in April 2027.
Realty Income keeps the streak alive
Realty Income has no such dip in its record. It says it has raised its dividend for over 32 consecutive years and declared 676 monthly dividends in a row. In September, it announced its 136th increase since its 1994 listing, lifting the monthly dividend to $0.2715 a share from $0.2710.
The business is growing too, just more slowly. Third-quarter AFFO per share rose 3.7% to $1.12, and on Nov. 2 Realty Income raised its 2026 AFFO guidance to $4.45 to $4.46 a share. It invested $2.6 billion in the quarter and is sticking with its $10.0 billion target for the year. But it guides to same-store rent growth of just 1.1% to 1.3% for 2026, against contractual same-store rent growth of 2.6% at W. P. Carey.
Its AFFO per share has outgrown its dividend over the past decade, rising from $2.88 in fiscal 2016 to $4.28 in fiscal 2025:
That took the payout ratio from 83.0% in fiscal 2016 to 75.2% in fiscal 2025, and analysts expect 73% in fiscal 2026. That’s comfortable coverage, and it backs up the company’s stated mission to deliver “dependable monthly dividends that increase over time.”
The main risk is debt. About $2.9 billion comes due in 2027 at a rate under 3%, and its interest coverage of 2.4x is thinner than W. P. Carey’s 3.3x.
So which dividend wins?
W. P. Carey is the better dividend stock right now. It pays the higher yield, keeps more of its AFFO after the dividend, and is growing that AFFO faster.
Realty Income’s 2.9% a year over five years would push its income past W. P. Carey’s by 2027, but W. P. Carey’s five-year rate runs through its cut. At the pace each raised in fiscal 2025, 3.7% for W. P. Carey and 2.9% for Realty Income, $10,000 in W. P. Carey pays $590 today and about $820 in year 10. The same $10,000 in Realty Income pays $570 today and about $736 in year 10.
W. P. Carey is also cheap against its own history, at 12x forward AFFO against a five-year average of 14x:
Realty Income trades at 13x.
None of that makes Realty Income’s dividend shaky. It’s well-covered, its AFFO keeps climbing, and a streak of over 32 years of raises is one I’d expect management to fight hard to keep. Retirees who want a check every month will love it. It’s just that W. P. Carey pays more, covers it better and grows faster, for less.
Of course, W. P. Carey’s dividend only started growing again in fiscal 2025. It still has to fund 2027 without new stock while refinancing at higher rates.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
