The market continued to slide the first few weeks of February. Dividend Aristocrats and other great dividend stocks continued to fall to levels I haven’t seen in a while. Lanny and I were having multiple discussions each day about which stocks are looking great and where to potentially focus our attention. Look how strong some of the names are that were on his January dividend stock watch list. Well, there is one stock that has continued to catch my eye as the price continues to decline. I’ve purchased the stock twice already in 2018 and I could not resist when their price fell below the half-century mark. Here is why I bought Realty Income (O) for the third time in 2018!
After my second January purchase of Realty Income, I owned 70 shares of Realty Income. I was excited. This purchase was made at the sweet price of $54.14, which was over $.80/share cheaper than my first purchase. However, I quickly realized that I probably should have waited a few more days to make this purchase, because Realty Income’s price continued to fall. $53…..$52….$51. In my mind, there was NO WAY the company’s stock price was going to drop below $50/share. I told Lanny that I would continue to add if it hit this limit.
Then, it happened, Realty Income’s stock price fell below $50/share. I immediately transferred money to my Roth IRA. $1,000 in fact. I had a free trade credit to my name, so as soon as the funds arrived, I made my purchased. Last week, I was able to add ANOTHER 20 shares of Realty Income at $49.50 per share., adding $52.56 in forward dividend income to my portfolio. After this purchase, I now own 90.1082 shares of the Monthly Dividend Company, producing $236.80 in forward dividend income. What’s cool is that I would be able to add almost five new shares via dividend re-investment each year at the current market prices. That is a heck of a lot of shares and will only help accelerate the growth in my forward dividend income.
Why have I continued to purchase share of Realty Income? I am huge fan of the diversification of the company’s real estate portfolio. This is in terms of both the types of properties they own and the industries that their tenants operate in. Plus, the company is on the verge of becoming a Dividend Aristocrat. It is a great company and one that I had always wanted to increase my position in. Well, the slump to start 2018 has presented me with a great opportunity to do just that. For more details about why I like Realty Income, check out my first purchase article from January, where I provided a little more detail than this brief paragraph. Since I’ve detailed this once in the last 30 days, I didn’t want to do it again and bore everyone!
Entering the year, I targeted increasing this stake to $5,000. With this third purchase, I am closing in on this total. So for now, I may look elsewhere and focus on increasing other positions in my portfolio. Or heck, I may even initiate a new position of the right opportunity presents itself. Lanny has been talking to me about several great stocks that I do not own that continue to fall, so they are on my radar. You will hopefully see some of these names on my next watch list, which I am expecting to release at the end of the month. But for now, I couldn’t be happier that my stake in Realty Income is finally over 90 shares! I cannot wait to receive that first monthly dividend in March that reflects my full position.
What are your thoughts about my purchase? Have you added to Realty Income? Especially once the price fell below $50/share? Or have you purchased other great companies like PG, ADM, or the other great names on Lanny’s recent watch list?