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Blackstone Inc. (BX)
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W. P. Carey Inc. REIT (WPC)
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Brookfield Corporation Class A Limited Voting Shares (BN)
Q: I hold both BX and BN at almost full positions. I am considering selling BX to purchase WPC to increase my dividend income and hopefully benefit from rising property prices. Are BX and BN similar enough that this strategy makes sense or would I be just as well off staying the course?
Appreciate your insight.
Paul F.
Appreciate your insight.
Paul F.
5i Research Answer:
We think BX itself is also a direct beneficiary if the real estate market improves, as a result, future dividend income could also increase as BX is committed to pay out 85% of its earnings. BX and BN are quite similar, but BN focuses on reinvestment while BX chooses a capital-light approach by paying out most of the earnings. We think both are high-quality companies, and we would prefer tend to stay the course with these high-quality names. In a rate pivot, they will likely still outperform WPC on a total-return basis, even with lower yields.