I 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
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.
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?