W. P. Carey and Healthpeak Offer 6%-Plus Yields With Different Dividend Outlooks
W. P. Carey and Healthpeak both yield above 6% and recently raised 2026 guidance, but analysts expect their dividend coverage to diverge. W. P. Carey has stronger interest coverage and a lower projected payout ratio, while Healthpeak offers a higher yield and monthly payments. Both REITs have cut dividends since fiscal 2020, making current growth and tenant credit key considerations.
W. P. Carey and Healthpeak both offer yields above 6%, and each lifted 2026 guidance after second-quarter results. Their fiscal 2025 AFFO payout ratios are similar, near 73% and 72%, but consensus for 2026 points to 71% for W. P. Carey and 78% for Healthpeak.
W. P. Carey’s interest coverage is 3.24x, versus Healthpeak’s 1.49x. Both dividends remain below fiscal 2020 levels. W. P. Carey faces tenant-credit risk from Hellweg, while Healthpeak’s lab same-store NOI fell 3.2% even as senior housing revenue grew.
Income-focused investors, including retirees and dividend funds, may weigh Healthpeak’s higher monthly payout against W. P. Carey’s stronger coverage and faster dividend growth. If Healthpeak’s projected payout ratio rises, some may favor W. P. Carey for stability, potentially affecting demand for each REIT’s shares. Tenant credit troubles at W. P. Carey and soft lab demand at Healthpeak could also influence local properties, employees, and communities tied to those assets, though outcomes remain uncertain.