Dividend investors often focus on the first dividend yield, which creates some logical meaning. However, there is a risk in over-focus on the yield. The point has a great case compared Anali Capital Management ,Only then -0.62%, And Wp carry ,WPC -2.70%,The dramatically higher yield of Anali is about 14%, but most investors will probably be better with 5.6% yield of WP kerry. What should you know when selecting these two high-ups of real estate investment trusts (Reits).

What does anal capital management do?

Anali is a capital management A hostage REITIt buys hostage that is simultaneously pooling in bonds like bonds. The hostage REIT is a high specific niche in the wider REIT region, where most companies buy physical properties. Bond securities that Anali buy trade throughout the day and their price is affected by things such as interest rates, housing market status and trends of hostage repayment. It is a very complex business that is difficult for shareholders to track.

Adding uncertainty here is often a generous use of leverage, usually used as collateral with mortgage securities portfolio. When the value of mortgage securities is changing quickly, the leverage may quickly increase the pain. He said, most of the time leverage helps to increase interest income, Anali produces and its companions. This is the main goal, the company has earned a difference between its costs (including operational expenditure and interest expenses) and it acquires on the mortgage securities that own it.

Anali’s business model is nothing wrong with per. The problem is 14% dividend yield There is nothing on which you can really trust if you are trying to stay away from the dividend generated by your portfolio. Take a look at the graph below. The total return line (blue) is impressive, but dividends and stock prices (respectively orange and purple lines, respectively) have fallen over time. If you have spent dividends instead of reorganizing them, you must have been left with low capital and low income. It is unlikely to be what most dividend investors are seeing.

Only then Data by Ycharts

He said, Anali only increased its dividend in early 2025. This is very good news and it is completely possible that it is the beginning of a top trend. But the big issue is reliability, with the unstable dividend history of MREIT clearly shows that investors are expected to change the dividend over time.

Why is 5.6% dividend yield of wp kerry better

This brings the story to WP Kerry, which cut its dividend in late 2023. But this deduction occurred after 24 consecutive annual dividends increased. And WP Kerry started increasing the dividend again after the dividend cut. It has increased dividends every quarter, which is the same quarterly growth rhythm before the cut. The question is why it was cut?

Dividend cuts with annaly are only a part of the mreit business model. WP came down with Kerry because the management decided to get out of the office area, a property type that was facing difficulty. The deficiency was actually a reset, with Pure lease The REIT bus is coming back normally, with a little small portfolio, just after the cut. The truth is that exiting the office and the dividend reset made WP Carey a more attractive business for prolonged investors for a long time.

5.6% yield is less than the yield you have collected from Anali. But wp kerry more traditional REIT The business model is actually designed to increase dividend over time. It is highlighted by pre-cut dividend track records, but also has the basic nature of portfolio. WP Kerry has physical properties that generate rental income. And most of the time it increases the portfolio through new acquisitions. Divestites play a role, but was unusual in the scale of exit from the office. Therefore the general goal is to increase business and provide investors with increasing income stream.

High yield is good, but business models are equally important

Anali is capital at the end of the day Total return investmentWhich basically requires dividend renovation. There is nothing wrong in this, but it is not that most dividend investors think about investment. If you want to stay away from your dividend income, then despite its dividend cut in 2023, WP Kery is likely to be a better option for your portfolio.