Feb 12 2009
Bought More O Yesterday
With the proceeds of my sale of ONAV I decided to add to my position in Realty Income Corporation (O). At yesterday’s price O was yielding over 9%. They are a real estate investment trust and a lot of people are skeptical of how REITs will do with the current financing crunch which has resulted in the stock price declining. I think O looks very good at their current price. The price might decline more but I’m more concerned with the dividend. O is extremely committed to maintaining and increasing their dividend. They even trademarked the name “The Monthly Dividend Company” which shows how important dividends are to them. As you might have figured out from the name they are one of the few stocks that pay dividends monthly. I consider that a plus. As long as they have enough money to keep paying their dividend- which I think they will- this stock will produce a nice return.
It might have been wiser to buy stock in a different company. I have 12 stocks now and I plan to have a total of 15. Once I have 15 different stocks I will gradually increase my positions in each of them. I just did that early for O because I thought it was attractively priced. We will see whether that was a wise decision.
