Acquisition O

With all of the chaos, madness and fear mongering in our media regarding retail closings. I can still find good deals out there to invest and purchase a peace of a beautiful business that will pay me for a lifetime to come. I honestly believe that there are great opportunities out there at all times in the market, you just need to do your due diligence and look deep and hard enough to find them. Though, I think this one found me more than I found it as I discovered one of my most favorite REITs on sale recently.

Company Overview: 

Realty Income Corporation was founded in 1969 and is headquartered in San Diego, California. Essentially, the company is a Real Estate Investment Trust (REIT) that owns a wide portfolio of properties in diverse sectors of real estate mostly in retail. Additionally, the company is engaged in an in-house acquisitions, portfolio management, asset management, credit research, real estate research, legal, finance and accounting, information technology and capital markets capabilities. As of December 31, 2016, company owns a portfolio of 4,944 properties located in 49 states including Puerto Rico, with over 83.0 million square feet of leasable space leased to 248 different commercial tenants doing business in 47 separate industries. Furthermore, out of the total properties in the portfolio, 4,920, or 99.5%, were single-tenant properties, and the remaining were multi-tenant properties. Plus, of the 4,920 single-tenant properties, 4,836 were leased with a weighted average remaining lease term of approximately 9.8 years. The first quarter of 2017 total real estate portfolio occupancy rate is at an astounding 98.3%.

Statistics:

  • Dividend Yield: 4.7%
  • 3Yr Dividend Growth Rate: 3.7%
  • Payout Ratio: 84.1%
  • P/E: 48.4
  • Consecutive Years of Dividend Raises: 21
  • Dividend Payout: Monthly

I purchased 40 shares of Realty Income Corp. (O) for the price of $53.30 per share for a total investment of $2,132.00 adding around $101.28 to my annual dividend income.

It is the 5th time I am initiating a stock acquisition this year. This transaction is my additional purchase of O shares into the portfolio. As of today, I now hold a total of 88.72 shares of the company. Additionally, O ownership stake represents to be around 4.6% of my total portfolio value.

Conclusion:

Portfolio “The Dividend Machine” has been updated with link > here.

Thank you for reading & have a great day!

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18 Comments

  1. Doug Arnold on June 7, 2017 at 23:50

    I need some money so I can buy some more O hopefully soon. It won’t stay down forever good pick up.

    • DividendVet on June 11, 2017 at 11:05

      You and me can say that again. Though my position of O is pretty much full for the time being.

      Take care.

  2. Mr. Robot on June 8, 2017 at 03:48

    Nice buy, O has been discussed many times on SeekingAlpha and various other sites. I see some of the DGI community jumping on the bandwagon, others are still a bit hesitant.

    I already have a (very) small position and will first focus on diversification before adding. Although it sure is tempting, love the monthly!

    • DividendVet on June 11, 2017 at 11:11

      When you look at the company’s history of acquisitions in real estate, consecutive years of dividend increases, their revenue growth, it becomes pretty clear we have a winner that know how to WIN in the game of real estate ownership and management. Sure everyone is talking about it, it is a great company to own that sends dividend checks like clockwork baby! To me paying premium P/E for this one is a no brainer.

      Thanks for your thoughts.

  3. dividendgeek on June 8, 2017 at 06:36

    The only things I am concerned about are

    1) P/E ratio. Any idea why it is so high?
    2) Retail space … retailers have not had it easy in the last few years

    • DividendVet on June 11, 2017 at 11:18

      It is one of the best REITs around, premium P/E is something I am willing to pay, the question is are you?

      I think it is a retail bubble mostly with Sears and a few others dampening the retail space for everyone. One thing is for sure there will always be physical retail locations for people to buy stuff, people are not going to stay indoors. Where other see fear, that is the most opportunistic time to consider, though you must see them.

      I hope that answers my mindset regarding your questions.

    • Captain Dividend on June 11, 2017 at 16:43

      P/E ratio isn’t a very good metric when evaluating REIT’s because of the way depreciation works. Price to FFO is a better benchmark.

      • dividendgeek on June 12, 2017 at 06:53

        Thanks DividendVet & Captain Dividend. Makes sense!

  4. Dividend Daze on June 8, 2017 at 09:14

    I really like this buy. Picked up some myself recently. That sector has been getting hit a lot lately so easier to find more entry points with its current value. With solid dividend history and growth along with monthly payments that compound. Great choice for the long term hold.

    • DividendVet on June 11, 2017 at 11:22

      Great to hear! Good to be a fellow shareholder with you. I just hope retail gets hit and hammered even more, longterm is the name of the game for DGI cult.

      Thanks for your comment.

  5. FiscalVoyage on June 13, 2017 at 14:46

    NIce buy. I want to add more to my O positons

    • DividendVet on June 13, 2017 at 20:03

      Much appreciated. The stock will not stay down for long.

  6. Dividend Diplomats on June 15, 2017 at 21:39

    I freaking love this buy Dividend Vet. I’ve watched the price continue to fall and I’m debating adding more to my position as well. Congrats on adding a great company to your portfolio. Oh, by the way, congrats on the slight increase you received this month as well!

    Bert

    • DividendVet on June 16, 2017 at 22:08

      Thanks Bert, I really love it too, receiving dividends on monthly basis that is. 🙂

      All best.

  7. Dividend--Portfolio on June 17, 2017 at 08:26

    I’ve said this before and I’m sure I’ll say it again but Realty Income is one of my favorite stocks in my portfolio. Div Vet, I think you made a great choice.

    • DividendVet on July 7, 2017 at 20:24

      I like to think so myself, either way essentially I bought something that brings me more cashflow in the end and not something that equates something to zero or even less than.

  8. Duncan's Dividends on July 6, 2017 at 14:56

    Awesome stock at what I think is still a fantastic price. I love O and have almost 300 shares myself. Hard to argue with a monthly paycheck. Congrats on the pick up!

    • DividendVet on July 7, 2017 at 20:22

      That is a solid ownership of share right there!

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