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Stock Buy $ARCP

American Realty Capital Properties Inc LogoThis very recent stock market correction is opening up some new doors to great companies that have plummeted to the lowest points I have ever seen. Fear on wall street is ramping up with new threats such as Ebola that is making people oh so nervous. But the doom projections that news media is televising religiously is probably not going to come. The only great outcome out of these last few days has been the sale of great businesses of this economy that know how to make money.

Many of you out there know this company already. Dividend growth investor community is notorious of owning this great peace of real estate asset. American Realty Capital Properties owns over a thousand buildings of some most reliable brands in the world operate from. Companies like Walgreens, CVS, FedEx, General Electric, Goodyear, KFC, Family Dollar, Proctor & Gamble, Taco Bell, and Pizza Hut to name a few. The company simply collects rent from these tenants in which then it distributes a minimum of 90% of the taxable income received to the shareholders. Their strategy on their home page is designed to reward the owners with generated rental income in the form of dividends. The portfolio of properties is well diversified by tenant, industry and geography while also maintaining lease durations of 10-12 years.

This makes my very 5th time building block on this position with this very latest acquisition. It is my most aggressive yielding ownership that spits out consistent money on monthly basis. What is not to love about these great REITs? Though, I am over my limit in my diversification strategy of keeping every ownership at 5% level. ARCP is now at 8.26% in my portfolio and is the biggest holding. This was never my intention, perhaps greed has gotten over me. The truth is, I did not want to pass up such a great opportunity in owning more of this great company at such low price valuations.

  • Dividend Yield: 8.36%
  • Payout Ratio: 95.3%
  • Monthly Dividends

I purchased 83 shares for the price of $12.00 adding $82.96 to my annual income.

The 12-month dividend income increased to $2,582.

12 Comments

  1. DivHut on October 7, 2014 at 16:45

    You are certainly correct that the recent weeks have brought on many new dividend investing opportunities for us to invest in. I remember not that long ago when every DGI blogger was echoing the sentiment about how everything was so expensive and that PEs for many stocks are sky high. Now SDRL, MAT and ARCP to name a few are in focus as they have all dropped. While I do not own any REITs, yet, I can see the allure of this yield for many and their stable of reliable tenants as well. Thanks for sharing your recent purchase with us and keep an eye on your diversification. If you are not comfortable owning so much of this REIT it may be time to start adding to other positions instead to balance a bit.

    • DividendVet on October 7, 2014 at 16:59

      Absolutely, this recent decline in stock market has many worried as many people only look at the net worth. The misperception is real and dividend growth investing is enabling us all in capitalizing on the noise.

      Yeah, no more REITs for me for a while, lol. I am quite a bit overweight in that sector and will be looking into other opportunities.

      Hope you are having a great day hunting for stock. Should be a national holiday.

      Take care.

  2. Special Agent Dividend on October 7, 2014 at 18:16

    Good pick up here to add to your holding. I really wanted to add ARCP amy last buy but ended up going with Ford. I’m hoping the price stays down for a few weeks because it’s at the top of my list to pick up. Best wishes!

    • DividendVet on October 7, 2014 at 20:11

      Thanks, ARCP is money! Hey I wouldn’t have a problem buying it again if it does go down lower, unfortunately it did became my top holding so “no más” for a while.

      I haven’t looked at Ford for a while now, their dividend seems questionable to me, though the stock has came back with a vengeance. I hope it does well for you.

      Thanks for stopping by.

  3. Dividend Mantra on October 7, 2014 at 21:02

    DV,

    We’re on the same page here, as I bought 110 shares just the other day. The portfolio is enviable in quality, and compares extremely well to Realty Capital’s. The only question is management, as the acquisitions have come fast and furious. It’s time to prove their staying power now. Let’s see how it goes!

    Gotta love that high yield, especially when it’s sustainable and growing. I expect a very modest bump next year, as the payout ratio is already high. But even a very small raise is more than enough when the stock is already yielding more than 8%.

    Best regards.

    • DividendVet on October 8, 2014 at 06:54

      I couldn’t agree more, there is latent quality in this company that will become apparent in the future. As far as the management goes from outsider perspective, they seem to be quite aggressive with acquisitions and I like that.

      Good to have you stop by.

  4. Captain Dividend on October 8, 2014 at 16:11

    ARCP is on my watch list but I already have a few REITs so I’m not sure if I’ll be buying right away. It sure looks good here though doesn’t it?

    • DividendVet on October 9, 2014 at 13:41

      Yeah, I know what you mean your position in O is quite heavy. I haven’t seen prices like these in ARCP in a while, so perhaps it does bring good buying opportunity. It is is fairly valued, plus with all these acquisitions they are having the revenues have been exploding. Time will tell if it continues to be a good investment.

      Have a good one.

  5. DividendDeveloper on October 9, 2014 at 22:18

    Great company, but I have a full position. If I didn’t, I’d be adding too. All the best!

    • DividendVet on October 10, 2014 at 13:44

      It is a good one, it just keep coming down.

  6. writing2reality on October 10, 2014 at 13:11

    I am a bit full on ARCP, but if prices stay low I might have to add a few shares just to average down my basis and get them while the buying is good, so to speak. I’m not too worried about portfolio weighting as I am still early in the accumulation phase, so things will get balanced out as time goes on.

    • DividendVet on October 10, 2014 at 13:51

      Yeah, it is a good idea to average down, though it could be tough when you buy that same month to average down and in a few more days when market drops a bit more, you figure out you pulled the trigger a bit too early. Could be frustrating so discipline is important.

      Best regards.

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