Recent Buy – Realty Income (O)
It has been a long time since I have made 2 purchases this close together. Low and behold though it has happened. Realty Income was a company that I owned a couple of years ago. Unfortunately, I made the poor decision to sell because I got wrapped up in the possibility of interest rates going up. That was a tough lesson for me because I got some profit at the time but then I watched the stock rally for years. If I would have just held onto the stock I would have collected dividends along the way and would have a lot cheaper cost basis. Live and learn!
Lately though Realty Income had become very interesting for me. With the recent pullback, they are currently producing PE ratios that haven’t been seen since 2011. This fact is very appealing to me. They operate as a triple net REIT and have secured long term contracts with some great companies. They proved to do very well during the last recession which is also appealing to me. The company also pays a dividend every month which will help boost my dividend income every month but this was not a factor in my decision to buy the stock.
As I mentioned, I have owned this stock before. I am much better positioned to hold this stock now than I was in the past. Previously I owned this stock in an individual account which meant that I was paying taxes on the dividends. This time around though I am holding the stock in my RothIRA which means I won’t be paying taxes on the dividends. Anytime I can position myself to not pay taxes is a great thing!
So given the opportunity I decided to start a small position in the company so I picked up 10 shares. My cost basis on this purchase is $541.24. With the recent pullback in the REIT sector it is very possible that the price of the stock could get pushed down even more. If this does happen I will gladly build onto this position. With these new shares added to my portfolio it will increase my PADI by $25.50. Which is one step closer to my goal of $1,000 by the end of the year.
I have recently noticed some other DGI bloggers posting about purchasing stock in the company as well. So it seems to be a popular choice lately.
Have you recently purchased stock in Realty Income? Do you currently own any shares of Realty Income? If so I would love to hear about it.
As always I look forward to reading all of your comments and questions, until then….. happy investing!
-Jason from MoreDividends.com
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I think it is a good buy Jason. I recently added to my position. I have owned since 2008 and have added to my position periodically over the years. Tom
Tom from Dividends Diversify recently posted…O My! Now I’m a Real Estate Guy.
It’s a great company and should have a position in a lot of portfolios. If you have been holding for 10 years then I am sure you have seen the compounding factor in action. Nice position and way to hold it for the long term. Thanks for stopping by!
Very nice buy, especially considering that I recently added to my position and may be looking to do so again 🙂 A great time to add to this rock solid, monthly dividend paying stock. Congrats on the additional forward dividend income!
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Thanks Bert. Nice job building a solid position yourself. If I would have had more capital I would have started a larger position. That’s ok though, I will just have to be patient.
Realty Income definitely seems to be a popular one at the moment and I can see why.
Those little tax benefits can make a big difference in the long run! One of the main reasons I don’t have too many US stocks being an Australian investor…
Yeah, despite the higher cost basis, I like my positioning of the stock this time around. Thanks for stopping by Frankie!
Great buy Jason. I currently own Realty Income and add to my position every month. I love the fact that the company market itself as a monthly dividend company. Seems like you got in at a good price too.
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Thanks DP. Now that it is positioned in my RothIRA I have no intentions of selling this one. I will just let it grow and grow. Thanks for stopping by!
Nice buy, sounds like almost everyone is picking this baby up recently.
timeinthemarket recently posted…Time in the Market dividend review – January 2018 – the rise of the bond dividends!
Yeah, it has been very popular lately among those in the DGI community. Thanks for stopping by!