To be safe, I usually keep some cash in my checking and saving account. If I have too little cash, I may not have enough liquid to cover emergencies. If I have too much cash, then my money is just sitting there only earning 1% interest.
So what do I do when I have too much money in my bank? Well if you’ve read this blog before, you know I invest it, but how to invest $1,000?
I’ll tell you. I bought a boat load of stock in Realty Income (O) also known as the monthly dividend company.
Here’s why I invested in Realty Income (O)
There is something incredibly satisfying knowing that you have a monthly check coming in from places other than day job. I know every month usually around the 15th, Realty Income will deposit around $4.64 in my account just because I have a $1,289.52 stake or 24 shares in their company now. Plus this stock value will continue to rise since they have a great business plan that I can’t talk about enough.
Realty Income owns 4,400 properties that pay a monthly rent check. They use that money to pay down their debt and also purchase additional properties to grow their empire and stock value. Another portion of that rent check is distributed among all of their shareholders as dividends. So I receive the $4.64 dividend and their stock price will continue to climb as they build their empire. Cool right.
Now I will caution, there are risk like any company but I feel these are worth it and this company has been around since 1969 will likely be around for a while longer. People have to keep paying their rent and when I say people, I mean their long time lease clients such as Walgreens, CVS, Dollartree and other staple companies in the community. Even if some of them don’t, Realty Income’s real estate empire is so large, it’ll take a lot of companies to default at once to even make a dent. That’s why I am comfortable depositing the full $1,000 into this stock, and being a small time investor, that’s alot for me.
However I will probably focus on other stocks now since 36% of my portfolio is in this company (that’s a lot). They say diversity is the best strategy, and who am I to argue. I just saw a great opportunity to get in on this company and I’m very happy I did. My monthly dividend income of my entire portfolio is now $10.38! I broke the $10 benchmark which is awesome! You have no idea how excited I am about this. That’s $10 I will receive every month for the rest of my life.