Recent Purchase – O!

Happy Cinco De Mayo everyone!  Hope everyone has fun celebrating the holiday and enjoys having a beer or two to celebrate.  A few fun facts about Cinco De Mayo:

  1. This isn’t a federal holiday in Mexico, in fact it only became popularized in 1933 when Franklin Roosevelt enacted the good neighbor policy in 1933
  2. Today Americans will consume approximately 81 million pound of avocados today.
  3. Los Angelos will celebrate with the largest Cinco De Mayo parties in the United States!
  4. Close to my home, Chandler, AZ will celebrate with Chihuahua races today.
  5. Finally Cinco De Mayo is not a celebration of independence.  Keep in mind Mexico won this battle, but ultimately lost the war and was occupied in the region for another five years.

Today marks another purchase in the last week that will continue to add to my ever growing snowball of passive income.  Today I purchased 114 more shares of Realty Income (O).  Realty Income is a real estate investment trust or REIT for short that had a total market capitalization of over $21 billion and was added to the S&P in March 2015. The company was founded in 1969 and has trademarked the phrase “The Monthly Dividend Company.”  This is especially important because monthly dividends help grow the snowball even faster than quarterly as the compounding occurs much quicker. The company has also increased its dividends a staggering 90 times since it was listed on the NYSE in 1994, an average of almost four times a year if we include every month in 2017!

Realty Income specializes in acquiring freestanding, single-tenant locations that are leased to companies in 59 states with approximately 83 million square feet of space available.  It’s major tenants are well known companies such as Walgreens, Fed Ex, Dollar General, CVS Pharmacy, and Circle K.  All well known brands in the US or their respective regions.  While many worry about the shift to digital shopping trends, very few of the top ten tenants of O are experiencing distress at being disrupted by Amazon. As of first quarter of 2017 the company had a 98.3% occupancy rate.  In 2017 the company expects to grow AFFO/share by 4.2%-6.3% (Adjustable funds from operations) which will further increase payouts going forward.

Today I purchased 114 shares of O at $56.2998, love those craze hundredths of a cent that I spent on the shares.  At this price with a $2.53 dividend yields 4.49% for me at the current prices.  This purchase adds 114 shares to the 170 shares I already owed to bring my total share count to 284.71 shares of O!  This purchase adds $288.42 to my passive income per year, not including any dividends DRIPped into the O shares and my total O holding will generate over $720 a year now!

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6 thoughts on “Recent Purchase – O!

  1. I know O is a popular REIT among many of our fellow DGI peers but I still prefer the health REITs long term. I know this name is more popular these days after its share price declined and I’m always happy to read about new purchases being made. Congrats on a nice size pick up. Those monthly dividends will help your compounding move faster.

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  2. I bought some O this past week. I bought a few shares last year when it dropped around $55/share, and that’s right about what I paid this time around .

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    1. Yeah I did the same, I originally bought in around $35 a couple years back and missed the last pullback to $55, but I made sure to capitalize on it this time. Even if it drops to $50 I’m pretty happy with this as an entry point. Thanks for stopping by!

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  3. Wow that is an impressive position you have in the company now. And this purchase will add a lot more to your passive income. Especially since they pay monthly, the compounding will be even greater. Picked up a few shares myself but capital is limited so nowhere near your numbers. Nice pick up and great entry point to add to your existing shares.

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