Recent buy – Realty Income

Last week I made a new buy for my Vrijheid Fonds.

I have a few stocks in my Vrijheid Fonds, which I think are always safe to buy. In the long run, these stocks are always value for your money. One of these stocks is Realty Income (O).

I did a quick scan of the company and the highlights are:

  • Realty is almost a Dividend Aristocrats (just a few months to go)
  • Dividend coverage AFFO (Adjusted Funds From Operations – the actual cash available for distribution): ~ 85%
  • AFFO YoY growth: 7%
  • Compound Average Annual Dividend Growth: 4.7%
  • Occupancy rate > 98%
  • Debt-to-EBITDA ratio: ~ 5.2 (Lowest in 10 years)
  • S&P-rating: BBB+
  • Dividend Yield: 4.7%
  • The stock price has dropped in the last weeks

On the basis of this information/research I think Realty Income is a great stock to have for the long run.




Last week I bought 35 shares of O at $54.49 per share (incl. fees). With this buy I added a little bit more than €10.90 (after taxes) of dividend to my Vrijheid Fonds for this year.

The projected dividend income for 2017 for my Vrijheid Fonds is €3,068.

Again a small step in my journey. And one-step closer to my goal. Has anyone else invested in this company recently? Any feedback is greatly appreciated!



Disclaimer: I’m not a registered investment adviser, investment professional, brokerage firm or investment company. Readers are advised that information on the website is issued solely for information purposes and not to be construed as an offer or recommendation to buy, hold, or sell any securities. All information, opinions, and analyses included are based on sources believed to be reliable, but no representation or warranty is made concerning accuracy, correctness, timeliness, or appropriateness. Please consult with an investment professional before investing any of your money.

16 thoughts on “Recent buy – Realty Income

  1. KeithX

    I also bought shares of O last week, Pollie, at $54.39. O is one of the stocks that we have set-up for automatic dividend reinvestment. Do you reinvest dividends or collect them to make purchases?
    Good luck!

    1. Pollie Post author

      Unfortunately it is not possible to DRIP my dividend of O here in The Netherlands (I always have to pay the normal fees of approx. $10). And therefore I collect them and make purchases

  2. Dividend Portfolio

    O is one of my favorite stocks in my portfolio (if not my favorite). What’s not to like? It pays monthly dividends and has strong fundamentals. Honestly, the only thing I don’t like is the fact that it’s a REIT, and so, not the most favorable tax treatment when held outside of a retirement account or an IRA. But I think you made a solid investment. Currently I own about 28 shares of O and I add to my position every month. So, I definitely think you made a great decision.

    1. Pollie Post author

      In our community a lot of people have O as a favorite stock 😀 me included.
      I don.t have taxes issues with REIT dividend here in The Netherlands. So I can buy them without tax problems

  3. Pursuit2Freedom

    I don’t think Pollie will care about IRA’s or whatever you US folk have. So no bad tax treatment here. 🙂

    It’s a nice company indeed. I’m still hoping for that magic 5% dividend yield but we will see if we get there again.

    Nice buy!

  4. DividendSolutions

    Hey Pollie,

    congrats on this buy!! Realty Income is rock solid and one of my favorite core holdings. On top of that i think that the recent price level is as good as it gets. A few days ago i purchased another 30 shares of Realty Income and i own now 200 shares. The blog post will be out soon…

    Keep it up!


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.