HYSA you don't lose your money, with O you lose your nav - down 23% over the last 5 years, down 11.4% over the last year, why would anyone buy O just to get under .30 per share but take a massive hit on NAV erosion.. If you want to ride with nav erosion there are plenty of monthly dividends paying over 25-45% yield...High Risk, High Reward....As the economy continues to crash, businesses are closing...I wouldn't touch a REIT right now.

Thanks for this

I think I can find better investments than O. The dividend growth rate is low for my liking then combine the share dilution and I plan to sell my position when it gets to $62.

Thanks for the video 🙏 Being originally from the UK, I was much impressed by how they took advantage of the recent redemption crisis in European property funds to pick up real estate with quality tenants like B&Q and Sainsbury’s at initial cash yield of 8.2%! Property Funds were once quite popular in Europe but now with higher rates and falling prices investors are heading to the exit and creating opportunities for Realty Income

Don't do stock in companies that hurt their customers

Thank you for this. I own O and just added significantly (25%) to the holding. And I'm concerned. Your analysis confirms my thoughts on the stock in the current interest rate environment. Your additional information regarding the shares released is also good. You're right that in the current interest rate environment, putting out more shares would make more sense than taking on debt. But It dilutes the shares already out. This is good to keep in mind. Overall, very good, thought provoking content. I appreciate it. Cheers

its going to be interesting to see what happens after the election when we enter into the next recession what this channel will look like :D

But... can you start from a few thousand? Or a few hundred? And if so, why aren't we seeing that video?

My 8% of international portfolio. I am a buyer every time they are below 52.

Everyone is different and every person has different perspectives on which retirement income philosophy to follow. I decided to utilize a dividend growth stock portfolio as an integral part of my retirement income. Fidelity Investments stated on their website that “Dividends have accounted for 40% of stock market returns since 1930 and 54% during decades when inflation has been high”. I consider myself a long term, buy and hold investor, and use dividend growth investing as one very important part of my overall portfolio. Many people invest and focus mainly on short term gains and high dividend yields. That may sound good, but does not fit my investment philosophy. I want my portfolio to grow over the long term. I concentrate on investing for the long term based on total return (capital appreciation plus dividends). An important point is to accumulate stocks (and ETFs) that have a nice percentage CAGR for both capital appreciation AND dividends. What most people do not take into account is the importance of dividend growth. You must remember that a stock with a small dividend may still be paying a small dividend percentage-wise as time goes by even if it is increasing its dividend significantly, as long as the stock is appreciating at a high rate. So, even if a stock has a small dividend percentage-wise, but is growing both the dividend and capital appreciation, over time, the dividend paid will be higher and the capital appreciation will be greater than a stock that has a higher initial dividend with a slower dividend growth rate and slower capital appreciation over time. This has a similar impact as compounding interest. It is compounding dividend growth. Over the long term, chasing yield is usually a big mistake. Here is an example. Compare Realty Income (O) to Texas Instruments (TXN). O has always been a higher yielding stock than TXN. If you purchased each stock at EOY 2013 and compared the results of capital appreciation plus dividends as of May 24, 2024, Texas Instruments has more than DOUBLED the total return of Realty Income. What might surprise you is that the total dividends accumulated during that time span are almost equal. TXN percentage yield still seems small (due to its very nice increase in capital appreciation), but TXN has been paying a higher dollar yield annually since 2019 (more dollars paid annually). The gap of TXN annual dividend over O will get larger and larger every year forward (with the assumption that both will continue as Dividend Aristocrats). The reason is that TXN capital appreciation CAGR and dividend CAGR during those 10 years has trounced O's capital appreciation CAGR and dividend CAGR. Most people do not realize or understand this important concept. One other item to note is that even though both stocks pay dividends, Realty Income’s dividend is non-qualified, while Texas Instruments is a qualified dividend. REITs, BDCs and MLPs/LPs dividends are taxed as ordinary income (non-qualified dividends). For Federal income taxes, qualified dividends are taxed more favorably (less) than non-qualified dividends. This is another advantage that TXN has over O (unless you own O in a tax exempt account/Roth account). The bottom line is you have to look at the big picture, not just a snapshot or just one metric. Doing research and analysis will provide a better overall view. Of course, that being stated, “Past performance is no guarantee of future results”. We do not know what will happen in the future of either of these two stocks. I am not saying that Realty Income is a bad choice, but Texas Instruments is much higher on my list. Texas Instruments is just one example of what you can find if you do the research and analysis of the myriad of stocks available. Do your own due diligence by doing your own research. Anyone can recommend a stock. The question is, is it a good stock for you and your situation?

In the years 1994-2000, rates in the USA were high. How did "O" manage at that time? 2006-2007 interest rates were high. How did Realty Income perform? After all this, where is it now?

Thanks for getting reit to the point 😛

Can you do same for agree reit?

Why is P/FFO a $ value? Shouldn't it be a multiple like P/E?

If you were to build a dividend portfolio using only ETFs, what would you recommend ?

Could you do one for Arbor Realty trust?

How do you think about taxes? Isn’t it worse to take ordinary income instead of cap gains?

should i invest in realty income along side another dividend etf or should i just put my money into 1?

I dunno, I'd say price has more to do with their top 3 tenants all having serious debt issues totaling almost 10% of their portfolio and the fact that finding proportionately profitable buildings in current environment will be very limited compared to the last decade and less to do with the fact that you can get an equivalent yield in a HYS. In either case continuing the passed growth in dividend seems highly unlikely in the next decade unless they continue to sell shares to maybe fund dividend directly. Not even accounting for their own interest rate debt rolling over.

I think these large yield stocks are great for smaller positions, they could take up only 4% of a portfolio but make up a much larger portion of your total Dividend Income At roughly 6%, you could have 1/3 of the money you have invested in a 2% stock

VICI is a better deal

I have shares in O and APLE REITs any possible chance on a review of APLE

Interesting to see what will happen since Red Lobster just filed bankruptcy and it’s over 1% of its portfolio

Nice, right to the point

Shouldn't the comparison to the high-yield savings account over time include it being compounded over time? I don't like that they have issued so much additional stock shares but I get it. I own it but I am a bit nervous. Thanks for the content.

This ticker is a bust lol zero gains under perform the index massively…. If your retired and trying to just preserve income and collect dividends all good if your young your loosing out big time on real gains 😂

MAIN has a $0.245 per share monthly, plus quarterly, and is trading between $48 and $50 lately. Not only do I not trust real-estate in this market, but they aren't even performing as well as my boys MAIN. REIT's make me uneasy these days (but I am living in Canada so maybe I'm just feeling the housing crunch caused by my government. Might be different for USA.)

My limitation to the big dump into o is the number of store closures. Walgreens and cvs may be making changes but I’m still slowly adding just not pushing it into o. I’m taking some riskier stocks but I’m young and playing with fun money instead of going to the movie theater and such.

I won’t buy O when Imcan buy ABR with a much better return.

stock even with div reinvested has simply been a loser stock.

I really appreciate your channel, Knowledge is POWER! Thank You for sharing yours! 🙂

Going with ADC instead

Thanks for the deep dive and I’m buying more soon and keeping it long term !

In my opinion investing in O is just committing to lose money slowly

Can we purchase this template without subscribing to the patreon?

I'm also looking at expanding my REIT positions through ETFs, but I'm hesitant because of the book value of real estate, which is way to high currently, and needs to be revalued when the loans are due to be renewed.

Thanks

I sold my positions in O at 55 via a Covered Call - will buy back in under 50... Nice profit on the Call and the dividends I received while I waited.

The only reason why I am not buying O currently is, that's the largest position in my portfolio already.

Great video

O is great! One area they are not into is storage. PSA is one I’ve started to look at. Maybe you can do a video on that REIT ? Thanks!

I keep buying more of this stock everytime it drops below 50. I've got about 80 shares. It pay's every month and just keeps growing. Hard to complain about it.

Like 19 here, thanks for the deep dive into O!

always, I love O.

first :D

Was here first!

Google "Propublica 3M" and read their long exposé article about how 3M internally knew about the PFAS proliferation health issues for decades before publicly admitting anything and finally agreeing to their $10+ Billion settlement. When I read ut, it struck me gow it sounded like the tobacco industry's hiding of internally-known issues with their product for decades while continuing to sell to the public. Thus is a black eye for 3M and potentially more class action lawsuits in the future, methinks...

Excellent video. I remember disagreeing with you about the dividend cut, clearly i was wrong. It happens BUT fortunately this is a learning opportunity, i did not buy 3M but it's good to learn from my mistakes and thoughts, especially when the information is laid out so nice and easy to see why i was wrong.

Looks great

What if I short a stock? Short bias traders are getting no love here lol. You also mention that your spreadsheets are on your Patron page but you don't list a Patreon page under your vid's description.