Stock Buy $VNQ
The newest member of the portfolio “The Dividend Machine” workforce becomes Vanguard REIT Index Fund (VNQ). Catalyst here are interest rate hikes as REITs just took a pounding here last few months dropping in price quite a bit. What better way to celebrate this than buying a phenomenal fund at a very reasonably discounted prices. Note that prices will be much higher few months from now. Also, you need to understand that it takes time to keep up with all of the holdings, therefore buying an index into REITs just simplifies matters as there are just way too many great Real Estate Investment Trusts (REITs) out there to purchase one by one. I will still keep my separate investment holdings in Realty Income Corp. (O), Digital Realty Trust, Inc. (DLR), Public Storage (PSA) and STAG Industrial, Inc. (STAG) as the companies have been doing excellent job growing cashflow and dividend distributions to shareholders.
Index Overview:
This Vanguard index ETF is a diversified portfolio fund of 186 companies that seek to provide a high level of income and moderate long-term capital appreciation by investing in a wide range stocks issued by real estate investment trusts (REITs), companies that purchase office buildings, hotels, and other real property. The goal is to closely track the return of the MSCI US Investable Market Real Estate 25/50 Transition Index. Offers high potential for investment income and some growth; share value rises and falls more sharply than that of funds holding bonds.
Statistics:
- Dividend Yield: 6.4%
- 3Yr Dividend Growth Rate: 6.4%
- Dividend Payout: Quarterly
- Expense Ratio: .12%
- Rating: Morningstar 3 Star Overall Fund
More Info:
Click here at Vanguard.com
I purchased 70 shares of Vanguard Real Estate Index ETF (VNQ) for the price of $78.49 per share for a total investment of $5,494.30 adding around $352.80 to my annual dividend income.
This is the 2nd time I am initiating a stock acquisition this year. This transaction is my first ever purchase of VNQ stock shares into the portfolio. Currently, VNQ ownership stake represents to be around 4.5% of my current portfolio value. Also, the acquisition of VNQ makes it the 40th company or ownership stake I am invested in.
Conclusion:
The Portfolio “The Dividend Machine” has been updated with link ➡ here.
Thank you for reading & have a great day!
Great timing to buy VNQ after the price drop in the last few months. Personally I also did buy a few REITS after the price drops.
Awesome to hear you seen the opportunity and took advantage of, that is success.
Take care
Great work DivVet! I understand why do choose to go for the REIT index rather than owning so many different quality REITs. Might do the same with utilites. Keep it up!
Thanks, but yeah, there really is no perfect method to this, its what works for you basically, so get to know yourself better. Therefore, for me I like owning some Index funds as well to simplify the sector and focus on just the businesses that I enjoy reading and studying.