Dividend Growth Stocks

Money in the Trough – The Dividend Portfolio Grows

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Dividend Portfolio GrowsI received another dividend income increase through a new purchase, and I’m excited!  Yesterday I got another one of my favorite emails… a buy limit order was placed.  Heck yeah!

While this buy limit order hasn’t been in place for a long time, it has been a stock I’ve wanted since I began my dividend growth investing journey.  However, my irrational desire to get the best deal possible kept me from purchasing.  Well, no more.

So yesterday, I purchased Realty Income (Ticker Symbol: O):

Purchase Date: 6/10/15
Company: Realty Income – (O)
Buy price: $44.75
Shares bought: 65
Yield: 5.09%

This $2,900 Realty Income purchase (O) will add $148.00 of annual dividend income to the portfolio!  Oh, and Realty Income (O) is a monthly payer, so I’ll get over $12 bucks each and every month from this one position.  Talk about instant gratification!

This purchase also raises my overall weighted dividend portfolio yield to 3.70% and the total number of positions in the dividend portfolio grows to 22.

And the most exciting number, to me anyway, is that the dividend income from the portfolio is now over $1,340 annually.  That’s $1,340 in cash for doing nothing!

Now the bad news.  I do believe REITs are going to be one of the hardest hit sectors once the Federal Reserve raises rates.  And, while I don’t know when this will happen, I do know it will “eventually” happen.

So why buy Realty Income now when I could get it at a much cheaper price (and a much higher yield) later?  Because I’ll buy it then too!  When Realty Income corrects back to its 6% yield price in the high $30s, I’ll be happy to average down.  I plan to make Realty Income (O) one of my dividend portfolio core holdings and this $2,900 purchase is a good start.

Dividend Portfolio

 

Did you buy Realty Income during this last downturn? Are you also expecting some big corrections in REITs once the Federal Reserve raises interest rates?

I'm a dividend growth investor who is aiming to retire early in 6 years at the age of 45. My goal is to live off the income my dividend portfolio and rental property produce exclusively and leave the corporate rat race. I hope you will join me in this journey!

4 Comments

  1. I’m reading blog after blog and it looks like the only buys we are making is in the REIT space. it’s understandable as the entire sector has been beaten down because of interest rate hike fears and bond yields rising. No matter, as you said, when the rate hike eventually does hit the fan it will offer us even better buying opportunities. I too have bought into REITs the last few days but in the health space. I’m focusing on the big three health REITs VTR, HCP and HCN. Thanks for sharing.

    • Blake

      Hi DivHut. Good call with the healthcare REITs. The aging population spells big demand and profits for those REITs in the next few years. The interest rate raise will hurt for a little while, but I suspect we’ll all be more focused on the deals than our drawdown. Thank you for commenting and stopping by!

  2. Great pick up Blake! I’ve purchased Realty Income Corp twice in the last two months and, like you, I’m ready and willing to keep on adding to it.

    Ken

    • Blake

      Hi Ken. I’m very excited to finally join the Realty Income shareholder team! Seems to be a VERY large group.

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