Latest Stock Buys (how I spent $1,000)

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.

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8 replies
  1. Mike H.
    Mike H. says:

    Realty Income is trading near 52-week highs right now with a PE over 50. As much as I agree with the analyst sentiment of growth this year, that’s a tough pill to swallow – my target price for O would be below $50. Personally, I’m averaging down on KMI for now. Once I reach a cost basis around 15.35 I’ll start looking elsewhere.

    Great buy for the long haul, though. I’m definitely going to be buying some soon. Just not right now.

    Reply
  2. Andrew
    Andrew says:

    Hi Mike, that’s a good point about the PE over 50. I’m still learning about P/E ratios. I was actually hoping to get in on “O” under $50 but my brokerage account the Robinhood app, took 3 days to deposit my money once I made the decision. By that time, I was still comfortable with the price. Plus I didn’t have to pay any trading fees, so I was happy =). Additionally, now I’m at $4.72 a month for my dividends. Cool, right?

    Reply
  3. americandividenddream
    americandividenddream says:

    Hi,
    Just to clear things up, O does not have a PE of 50.. you cannot price REIT’s based on PE. O really has a forward P/FFO of 20… still way overvalued, but more in line with the market. It would be worth it to look into OHI or VTR with P/FFO’s closer to 10-12… undervalued in my opinion.

    Anyways, keep up the good work and I love the blog! Very clean and sleek

    Reply
    • Wallet Squirrel
      Wallet Squirrel says:

      Thanks American Dividend Dream! I’m adding that on my list to research now as well. I’m just a huge fan of this business model and it’s as close as I can get to investing in real estate right now until I have enough capital to buy a rental property.

      I have been looking at OHI for a bit now as I like some of those healthcare REITs, but I’m trying to figure out if my current portfolio at 50% REITs is to heavy. It’s tough to diversify when you like something so much. lol Thanks!

      Reply
    • Mike H.
      Mike H. says:

      Thanks! Yeah, REITs are a weird animal, and O was flashing “too expensive” to me from all sides. I want it, but not at a 52-week high. Will keep an eye on it through June: $45 is my dream price, but I’ll start averaging in at anything under $50.

      VTR looks like an interesting buy (can’t afford it right now) but OHI continues to scare me off. I’m afraid they’re going to cut their dividend this year; if they do, I’d expect the price to tumble. Once that happens I’m in because I really like that company.

      Reply
      • Wallet Squirrel
        Wallet Squirrel says:

        I like OHI, but it only focuses on senior living. I think senior living will do well, but I prefer a more diversified Healthare REIT like HCP. I just bought 11 shares of HCP today in fact. I think diversifying over senior living, hospitals and medical office buildings (which outpatient care is a huge market right now) will do well over the long run.

        However typing this and looking over your notes on over-priced stocks, I may have bought this high. Yikes, ok the more I know the more I’m over thinking.

        Now I just sold those 11 shares for a $0.22 cent profit and will rethink this strategy. lol

        Reply
  4. BeSmartRich
    BeSmartRich says:

    $5 of free cash every month is sweet. After all, all you need to do to collect it is nothing. Realty income seems to be a good choice lately. I have seen the name popped up several times. Thanks for sharing and keep on buying!

    BeSmartRich

    Reply

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