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Recent Buys

Recent Buy – Realty Income Corp (O)

Realty Income Corp (O)

Well that was quick. I usually don’t make back to back buys like this. Last week I announced my recent buy of ABBV. I have just made my second purchase of the month and year adding 13 shares of Reality Income Inc (O) to double my current position. Here are some of O stats.

 

O Stats
Annual Dividend: $2.63
Yield: 4.97%
Years Paying/ Increasing: 22 years
Dividend increase from prior year: 3.04%
Payout Ratio: 90.9%
P/E Ratio: 43.47
EPS: $1.22

 

I have had O in my portfolio for at least 6 months now although my position is rather small. I knew I wanted to increase it but needed to wait for an opportune moment. Now seemed like the perfect time. Seems like all REITs are being hit hard right now. Rising interest rates probably have a little bit to do with that. Makes for a good buying opportunity. Especially for quality companies with great dividend track records like this.

 

This recent buy will lower my overall cost basis as well as double my position there by doubling my dividend income received. Since it pays out dividends monthly, the compounding will happen even faster. Secondly, this purchase comes at the perfect time since O just announced another dividend increase. Not much but every little bit helps right? I know a lot of other members of the community took advantage of this opportunity as well recently.

 

As shown above, O has a dividend yield of 4.97% or $2.63 annually. This will add another $34.19 to my yearly dividend income. Broken down quarterly, it will add $2.85 per month. Glad to have this quality monthly dividend payer’s position doubled in my portfolio.

 

What do you think of this buy? Do you like O or do you currently own any? What other companies are on your watch list right now? Comments are always welcome below.

 

34 Comments

    1. Nice add. Can’t time the market. Happens to the best of us. Nice to see you taking advantage of the opportunity as well.

    1. Yeah I should be trying to max that out first. But I saw the opportunity and wanted to take advantage of it. I still have plenty of time left this year to max out the IRA. Good luck filling up yours fast this year.

    1. Yeah you mentioned you picked some up the other day. Glad to see you also taking advantage of the dip and seeing the value in it. Love those monthly dividends!

    1. I agree. Fair price is still the safe play since no one can predict a bottom in the market. Long term it will perform just as well. Wish I had the capital to add 50 shares. But slow and steady works for me. Enjoy all those new monthly dividends!

  1. It seems like O is on everyones buy list this month. I plan on picking up a bit more while this thing is beaten down. Cant pass up that 5% monthly yield. I look forward ro your next purchases.

    1. Yeah I knew a few others bought, but it really seems like the majority of us have at this point. Like you said, hard to pass up on that yield as well as a monthly dividend payer.

    1. No wonder why it is in the REIT index for you. Solid company, nice history, great yield, and monthly dividends. It fits in a lot of portfolios. At least you are still getting some exposure. Thanks for stopping by and commenting!

  2. Hi DD,

    it seems to me that a lot of DGInvestors know when to buy some more Realty Income shares:-). Congrats on your purchase!
    I just bought another 50 shares of Realty Income and my position grew to 250 shares… if you have the time you can check out my recent blog post of this and the Welltower buy:

    https://dividendsolutions.wordpress.com/2018/01/19/recent-buy-aktueller-kauf-7/

    Keep it up and good luck to your plans in 2018!!

    Cheers,
    DividendSolutions

    1. Wow, 250 shares! That is some position. Jealous my friend. That will provide some awesome monthly dividend income for you. Always nice seeing these price points to add to a good position. I appreciate you stopping by and commenting!

    1. Yeah seems like every time I look at my twitter feed or read someone’s new post, they also bought some. No complaints here. Nice to get a few buys under my belt in the beginning of the year. I’ll be able to see the growth over the whole year. Thanks for the comment!

    1. You are still catching up pretty quick, especially with your auto investments. Bought it at the perfect time as it just increased its dividend. So far so good, looks like it will remain a solid performer for both of our portfolios.

    1. OHI seems to be very popular, especially with that high dividend yield. Although getting close to 10% feels risky to me so I’ll refrain. Too bad you can’t buy some of those REITs. But I’m sure you can still get exposure to them elsewhere. Thanks for stopping by and commenting. Hope to see you around the site more often!

    1. Wow, that is some buy with 188 shares. I wish I could afford to add that much capital into it. Awesome for monthly dividends. Glad to see you take advantage of the opportunity as well.

  3. DD,

    Great pick, I was thinking about O together with some other REITs, however, I end up buying HCP, SKT and OHI recently instead of O. I am still quite light on REITs relative to overall portfolio weight and have room to add more. I agree with your idea of buying ton income stocks (such as REITs and Utility sector) at this market condition since those have been beaten down a bit lately. Good Luck.

    TDK.

    1. REITs and Utilities seem to have the best value right now. My next buy will probably be a utility but we will see. All of those companies you listed are near their 52 week low so really no bad way to go about it. Nice to take advantage of the prices now and make some buys while they are low on a sector you need more of. Thanks for stopping by and commenting. Keep up those quality buys.

  4. Almost 5% is great! Congrats on the buy; REITs all the way. I like for a small part of my portfolio to have REITs, but the income is substantial. Do you have this in a tax advantage account?

    1. Yeah REITs are nice for high yield and passive income. Unfortunately, this is in my taxable account so it will be taxed at a higher rate. But I like having the option to take dividends in cash if ever needed without penalty. Like in retirement to be used for expenses. Do you put all your REITs in a tax advantage account? Probably a smart play for most.

    1. Seems like there are a ton of people in the community that bought it on this dip. Nice to add more to a monthly dividend paying position. Great stock. Hope you can pick some up while it is still low.

  5. Sounds like this one is worth the quick back-to-back purchase! Just read a couple of other posts on this stock and sounds pretty compelling. If the tax was more favourable from an Australian investor’s perspective this would certainly be on my list!

    1. Yeah that is the one thing about REITs is they are taxed at a higher rate. Most dividend investors I know put these in tax advantage accounts which is the smart play. Just need to remember, you can’t use that as income if you are planning to retire early and live off the dividend income. You will take a penalty to pull it out. So there is a trade off. Higher growth in a tax advantage account, but it is not as liquid. But this company is for sure worth another look. It fits in so many different portfolios. Thanks for the comment!

  6. I like the buy, DD. I was pondering a purchase of O below $52, and it reached that level, but I decided to hold off, as I’m content with my REIT exposure at this time. If it dropped below $50 I’d probably buy a little more regardless. Doubling your position and knocking your cost basis down sounds like a win-win. I’m certain you’ll be happy with that extra monthly income! Take care.
    Engineering Dividends recently posted…Monthly Options Income (Jan. 2018)My Profile

    1. No complaints here adding extra monthly income. Wins all around. It would have been really nice to get it for under $50, but it didn’t drop that low. They are still down, but looks like it has rebounded a percent or two. Should be a good long term hold. What are you looking at buying next?

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