Recent Buy – Realty Income (O) X 3

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?



28 thoughts on “Recent Buy – Realty Income (O) X 3

  1. I purchased O twice this year so far! I’m now at 44 shares but I would like add another 50 by years end. I also just added to another great monthly dividend payer STAG. I Added 10 shares to my ADM position and another 7 towards my PG position. I’m loving this pull back and will be gobbling these cheap shares up with every extra dollar I have! This tax return can’t come sooner!

    • Diligent,

      44 shares. Heck yeah. I don’t know too much about STAG, but I just checked out their website briefly. It would be a fun company to investigate further and I definitely do not own anything in the Industrial REIT area. I was a day late for getting into PG and the price swung back up before I could make my purchase. Now I just have to be patient and I know there will be another opportunity that presents itself. I’m pumped for you and all the moves you were able to make here.


  2. I like the buy here below $50 although I think there could be more downside aside do to investors’ over reaction to rising rates. I have faith in O’s management and feel that anywhere between $45-55 is around the fair value area for O. A very rough estimation of O’s value using the dividend discount model with $2.628 current annual dividend, 4.5% annual growth and 10% required rate of return puts O being fairly valued at $49.93. Sadly I haven’t been able to add more here with new capital, but I have been adding via DRIP since February 2017 and have added 4.6 new shares in that time. So I’m loving seeing that price go down to keep adding more shares via the DRIP.

    • JC,

      I think we are all still figuring out the potential impact of inflation and interest rate on the market. IT will be interesting as more information comes out over the next few months. If so, there may be some other great opportunities to purchase O over the next few months as you predict. Looks like your estimated price was right in line with my last purchase price and that company is hanging around that mark still. Enjoy the lower DRIP my friend.


  3. I’m right there with your Bert. I’ve purchased 45 shares of O in my Roth for 2018. Currently holding 71 shares. I liked the stock at 55, I liked it more below 50.

    Funny thing when people love these stocks at high prices but when they go on sale they let the fear get the best of them.

    Same company, better price. #C’monMan!!

    • Money Hungry,

      Woah. Nice purchase! You weren’t kidding and it looks like we have had the same mindset here. You bring up a funny point about investor mentality and I’m sure people could write a ton of posts about the topic. I haven’t viewed this as catching a falling sword. Rather, as you put it. I liked it at one price, it continues to fall, so I would be a fool not to continue adding and lowering my cost basis.



  4. Hi Bert. Yes O is a good buy at this price 🙂 Would love to own O for their +5% yield and monthly dividends. Saddly my broker forbifed REITs due to mifid2 :/ Overregulation get more and more absurd in EU 🙁 But bought some PG at their dip. Hope the company will get back on growth track.

    • P2035,

      Oh no! That’s a bummer that you cannot own shares in the company. Those are definitely some intense regulations that do not allow you to own Realty. But hey, you took advantage of a great opportunity and price and scooped up shares of a great company like PEP! I’m sure they will make their way back and I cannot wait for their upcoming dividend announcement. Based on how this year has gone, I’m expecting something great from them.


      • I doubt that PG will raise their dividends more then 2-3 ct as there is no big growth in their top and bottom lines. Yes their share repurchase allowed growth of EPS but bussines it self is a bit stuck latelly. But im betting for their recovery in long run 🙂 I see you invested into PG quite big so we are on the same boat 🙂

  5. Nice Bert!

    Great company and at lower prices it only gets better.

    I started a position in pg. Now the debate is where to out the rest of the money. I always love to drip so might put more into pg before ex dividend date!


    • PCI,

      Nice pickup with PG PCI. This is where you put your watch list together, find two or three great companies that are close to your “buy zone,” and then pounce when the right opportunity strikes. You have a few months left for PG before their next big divvy announcement and their ex dividend date, so you should hopefully be able to add a few more shares!


    • DI,

      Think about how great the names in your listing are. There have been some great names and great buying opportunities out there. Just keep side hustling and moving, and you will create a few extra dollars you can throw into the market. Man do I love this stuff!


  6. I like that you are averaging down, Bert. I certainly agree that the price below $50 looks good. I added some O shares recently as a result of it dipping below $50 as well. My position is now about 115 shares, so not too different than yours. Thanks for the update.

    • Thanks ED! That is an awesome position and I’m jealous. Who knows, I may get there if the price continues to fall haha I’m pumped for you and you are going to receive well over a share per quarter. exciting stuff!


  7. Hey Bert, great addition to your portfolio. I just wish I could have joined you in taking advantage of the price decline. O right now is at a phenomenal price. It just shows that sometimes it’s important to have cash set aside ready to invest when opportunities arise.

    • Thanks Dividend Portfolio! There will be other opportunities to join the fun, whether it is with O or another great dividend stock that happens to trade at a discount. I do always try to have some cash available that will allow me to take advantage of an investment opportunity. Sometimes it is a few hundred dollars, other times its more. But it is nice to be able to jump on an opportunity when it presents itself.


    • Geek,

      It is very popular. Although, I don’t know if I would used earnings for the multiple since REITs use FFO as their borderline metric. Regardless, I like them versus others in the industry and will continue to add if the price falls!


  8. Great buy and a good time to add to your position, as I doubt the price will stay below $50 for long. Good choice to buy within the Roth IRA so you don’t get taxed on that monthly income. Realty Income is the largest position in my Roth IRA and I have maxed my 2018 contribution, but if it comes down any more I’ll be tempted to buy more in a taxable account.

    • Thanks Brian! I hope you are wrong because I would love to DRIP for a few months at prices below $50 haha. Congrats on already maximizing your 2018 contributions. That is quite the feat given the fact it is only February!


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