Saturday, March 28, 2015

Recent Buy: Realty Income Corp


Mar 16, 2015: Bought 50 shares of O at $50.67 per share.

Known as The Monthly Dividend Company®, Realty Income Corporation (NYSE:O) is an equity real estate investment trust dedicated to providing shareholders with dependable monthly income. The company earns income from more than 4,300 properties owned under long-term lease agreements with regional and national retail chains and other commercial tenants. Realty Income was founded in 1969 and is headquartered in San Diego, California.

Realty Income is a Dividend Contender with a streak of 22 years of consecutive dividend increases. In fact, as of 03/16/2015, the company has a track record of 70 consecutive quarterly increases with a compound average annual dividend growth rate of about 5%. Shareholders of record on 04/01/15 will receive a dividend of 18.95¢ per share. Annualized, the monthly dividends equate to $2.274 per share. At my buy price of $50.67, Realty Income yields 4.49%.

To see my reasons for buying Realty Income, please read this Seeking Alpha article.

12 comments :

  1. Divgro,

    That is a solid company. I have had them for several years and originally was in when it was almost 1/3 the price. I still love Realty Income and their growing monthly dividends and property portfolio.

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    1. Great entry price for you, then! I hope several years from now, I can say the same thing for my recent purchase of Realty Income... Thanks for commenting and take care!

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  2. Nice purchase Divgro! The pullback in REIT's was definitely a buying opportunity about 2 weeks ago! I recently bought OHI. It's nice to think other investors were thinking along the same lines because I've noticed a few other bloggers making REIT purchases.

    Keep up the great work! Love those monthly checks with O.

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    1. Thanks, ADD -- yes, I noticed the pullback in REITs and took the opportunity to buy O since I've been eyeing it for a while. I wanted another monthly payer, and O fits the bill nicely.

      Take care!

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  3. Gotta love O! It is my largest position in my portfolio and I got lucky getting in at an attractvie price. I am hoping to go down some more so I can add more shares to my existing ones. Thanks for sharing!

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    1. You're welcome, FrugalitytoFinancialFreedom. With O being your largest position and having gotten in as early as you did, I can understand why you love it! Congratulations and I'm happy to join you as a shareholder. Thanks for visiting!

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  4. Wish I would have got in at sub $40 back in mid-2013. I regret not pulling the trigger ever since. Great company, its on my wish list, but it needs to come down to $44-$45 range. To me its overvalued right now--way over valued. I get it, that it doesn't matter in the long run and its a "premium" company, but I can't buy at $52. Good luck DivGro, and I am envious of your timeline.

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    1. Fair enough and I appreciate your point of view. Personally, I don't see it as "way overvalued". If O every drops down to $44-$45 (or better, sub $40), I would buy more shares and reduce my average cost basis. Until then, I'm going to enjoy my monthly dividend income.

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  5. I hear you. I will be on the buying end also if it hits that range. Enjoy the monthly dividend---as I said--I am envious :-) . This is a company I want to own-- and badly.

    I am in the process of evaluating several "premium" companies. You know, those companies that always seem overvalued, command a premium, but yet keep going up and up. O is one of those. There are others so I am weeding thru those now. Good luck on O, its high on my list and I hope to be a fellow shareholder soon.

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    1. Cool -- would be interesting to know which "premium" companies you're talking about. Hopefully, we'll see a post, or several, about that soon. Cheers!

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  6. These are a few of what I call "premium" companies. ADP, GIS, PG, MCD, O, K, CL, CLX, COST. These companies are typically priced by the market consistently at fair, or above fair value--and rarely are undervalued. Just my opinion.

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    1. Interesting -- thanks for sharing. MCD is the only stock with a P/E below 20. And only ADP and COST have PEG ratios below 3. Of course, those are not the only fundamentals that count and I'm just using a spot check. I can confirm that I've wanted to buy ADP, PG and CL for a while now but they never seem to be available at near fair value!

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