This 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.