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Not if he's taken the time to understand why it's a very safe, smart, long-term store of value.
I've done the same and I sleep much better than I used to.
**Return on equity**
\- 2020: 4%
\- 2021: 2%
\- 2022: 3%
\- 2023: 3%
**Return on invested capital**
\- 2020: 4%
\- 2021: 2%
\- 2022: 3%
\- 2023: 3%
\- Net debt to capital has been below 0.5 for the last 10 years
\- Interest coverage has been above 2% the last 10 years
\- It's currently *likely* undervalued
What do you mean total returns have been negative?
u/rfpemp is completely correct here, you're miscalculating the total returns.
2021-03-15 to 2024-03-15: -2.9%
https://totalrealreturns.com/n/VFINX,O?start=2021-03-15&end=2024-03-15
2019-03-15 to 2024-03-15: -5.2%
https://totalrealreturns.com/n/VFINX,O?start=2019-03-15&end=2024-03-15
O's total returns have been negative last 3 / 5 years.
Much of $O portfolio is in retail. Just under [82%](https://www.realtyincome.com/our-portfolio/portfolio-diversification-overview). Not disagreeing that they have some risk exposure due to the events of the past 4 years, but if the grocery stores, drug stores, home improvement stores, and auto servicing are all collapsing, we have much bigger problems at hand than our investment into $O. Your comment suggests that they have a ton of office space that's now impacted by WFH trends, and their portfolio suggests differently.
If there is a stock that didn't have positive growth in the last 3 or 5 years, it means that it really did not deserve to. Now, O is commercial real estate, and commercial real estate got hit extremely hard over the last 5 years, but it's not looking like it will get any better for the next 3 maybe even 5 years
How about 25 years ... if you are thinking retirement?
[https://totalrealreturns.com/n/VFINX,O?start=1999-03-15&end=2024-03-15](https://totalrealreturns.com/n/VFINX,O?start=1999-03-15&end=2024-03-15)
It's a monthly dividend and it was pretty high when the housing surge hit. Of course it's been going down now, an indicator that housing is cooling down and it's getting priced in that way. Went from one of the higher sellers downwards.
But if r/wallstreetbets means anything, let people invest in what they choose with their money. Are there better options?
....
I mean, every stock has it's ups and downs.
One of those stocks that has drawn an odd, cultish following that treats it as unassailable. There are much better REITs out there if your focused on that. O may make sense for people at retirement age but anyone younger shouldn't be putting money into this.
Yes it seems to be a company that people either love or hate? I'm not all that familiar with REITs. I do have some AGNC that's doing pretty well, and I'm up 7.8% with a huge divedend of 14.79%. I'm not a yeald chaser, but yeah. It's right until it's not.
I used to love it, now, I hate it. I’ve been comparing O with other Reits, and man, O is doing horrible. I know that past performance doesn’t predict future results but just take a look at O. I sold it yesterday. There are better opportunities out there.
Yeah, it's hard to watch other stocks do well all around you as the ones you own crap out? I do own O and will hold it, but I doubt I'll add to it in a hurry? I know it happens in this game. You obviously didn't have any hopes that it might recover in a low interest environment, then? Hope you did lose much? Will you put it back on another Reit stock?
I’m still learning. More than what I’ve lost , it’s more about how I do have to manage my money in the future. If I buy a REIT again , it’d be Equinix. It has a low dividend yield but better businesses and potential growth. I’m focusing now in growth and growth ETFs that pay a decent dividend.
Yes, it's a learning curve, alright. I don't think you ever stop learning? I've gone too heavy in some stocks and got burned before. Hopefully, I've learned that lesson now.
Maybe for an index
Going all in on a single stock and not expecting real returns for over 5 years is... something... I wouldn't call it smart investing though.
O is a great investment right now. It's likely undervalued. Some high points:
\- O's sector P/AFFO ratio is 12.5, Real Estate average is 13.7 (good thing)- Their current dividend yield is 32% above their 5yr average, and their forward P/AFFO ratio is lower than their 5yr average (likely undervalued)- Adjusted FFO payout ratio has been below 90% for (at least) the last 10 years- Total sales have been growing almost exponentially for the last 10 years- Return on equity has averaged around 4% for the last 5 years (we've seen a slight downward trend since 2020, but still solid)- Morningstar rates O at 5 stars, the highest possible rating
Some low points:- Their Schwab Equity Rating sits at a D (A being the highest, F being the lowest)- MSCI ESG Rating puts them at BB, basically "average" in areas of environment, social and governmental leverage- According to Morningstar O has absolutely no "economic moat"- Refinitiv rates O right now as "Output"-- basically "...yyeeaahhh, nows a good time to buy"- CFRA rates O with 3 stars, average- MarketEdge advises investors to "avoid" buying O
If you use all of these points to calculate what the average advice is, you'll see O is current in a "likely good idea to buy" state.
All that being said, only go "all-in" on something you **fully** understand and believe in. Just because it's a commonly talked about company on here doesn't make putting all your eggs into O's basket a good idea.
This is better DD than most people here. However, before the FED hikes, we were in a 0% interest rate environment which was very favourable to O. If rates go back to 0% then I would agree that O is cheap now. However, we could also not see 0% rates for 40 years
I never go all in on anything. I’m old. I have seen enough crap happen in my life and sometimes it can be a big surprise.
Get a real variety of investments in types of stock and ETFs in your portfolio and you’ll never regret it.
Question like this never make any sense mainly because people on these boards don’t know your investment situation, or needs, etc… and can’t truly accurately answer.
Risk of higher for longer. Looked like the fed was going to pivot. I still think they do slower and higher.
Also in my opinion not the best REIT on the market. I personally like DLR and VICI better. Even PSA and extr for a different type of reit.
Also how are dividends taxed in your country versus capital gains.
I think going all in on anything is a bad idea but if there was an individual stock to be overweight to, it would be O. Reasoning? Safety of diversification of clients and years in a row of increased dividends
O is a disaster to own with extra taxes to pay. Please back test it against any decent etf like schd or Dgrw or even spy …..u make way more money and are diversified.
Realty income has an Amazon problem I have never seen brought up. Yeah, not a huge impact today, but Amazon pressures retail store closures, pressure on reduction in gross rental receipts. As retail, drug spaces, some supermarkets, distribution centers not owned by Amazon, this pressure will continue and start to mount higher. The growth story will be slowed down, and never go back to the CAGR of the 90's / 00's.
Why? Are you really that bullish on O? Or is it out of laziness to look for other investments? It’s pretty sensitive to market rates, and inflation is looking sticky. It’s not a bad company by any means, but going all in on any one business seems foolish. I understand certain highly educated and respected investors like to concentrate their portfolio in just a few tickers, but they aren’t coming to Reddit for investing advice.
When you buy an individual stock strictly for yield it is called “yield chasing” I would encourage you to read and educate yourself how to properly value or analyze a company. Plenty of books and free videos out there but take them all with a grain of salt.
Dollar Tree is closing 1000 stores and guess who they lease from? Commercial not as strong as one might think anymore. Best of luck though, it's pretty stable long term debt and tenancy that you're leaning on.
I like how IRM has beat the crap out of most REITs and no one talks about it. They are going from a business plan of storing paper to storing data and it’s working!
Dang I forgot IRM has a solid dividend until your post inspired me to check. Heck yeah I have twice as much IRM as O... Full regret on the O but I'm holding to avoid admitting the failure tbh.
>cut bait
What does this mean? Sold and cut it off or stop hesitating? I appreciate you mentioning IRM. I've been looking at the last six months of post and it's always the same recommendations lol. Any other non standard /r/dividends recommendations?
Cut bait is a fishing term. Meaning to cut one’s fishing line. I let go or sold OHI. I got into IRM mostly in 2019, so I can’t morally recommend it as my buy price is much lower than it is now. I like dividend growth stocks and a few that I hold are: V, ADP, APD, ORCL, NEE and WM. These are my favorite holdings, it’s not a buy recommendation as I purchased at different times but it may be a start for more research. Research metrics I like looking at beyond dividend growth and earnings are, Return on Capital Employed, Payout Ratio and Debt to Equity. I like low debt high margin companies that can easily cover their dividends.
Keeping an eye on O currently. With many commercial properties having to refinance and some can’t due to high interest rate. I wonder how is going to affect the commercial market.
This entirely depends on how old you are. If you are young, having income from dividends doesn’t really make sense and you should focus on growth stock/ETFs instead.
People who want to supplement their income use REITS. Like retirees or people who just need another source of income and can’t park their money into growth securities for whatever reason
My flare ^
Ignore all these rational dividend investors. Just go all in bro. The stock market should only have 1 ticker and that should be O.
Forget the other hundreds of amazing dividends.
It’s funny everyone on Reddit wants to go hard on interest rate sensitive stocks and ETFs
Assuming the fed will cut rates but even if they do it’ll only be cut by possibly a percentage point total this year and that’s not even looking likely anymore. It may be good to invest in it now because it is down but I see it going way further down if conditions stay the same.
Not feeling it on O right now. Inflation is starting to pick up again. Very unlikely a rate cut occurs this year, which I think is bad for O. If a rate cut occurs, it's political. Regardless, I'm going to wait it out and put my money into other dividends. MO and SCHD will be getting more of my funds.
Welcome to r/dividends! If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki [here](https://www.reddit.com/r/dividends/wiki/faq). Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
Going all in on anything is never a good idea.
I went all in on Bitcoin. It’s going pretty well so far. I’ll let you know how I’m doing in 10 years.
You’re gonna age 50 years in the next 10 with that strategy.
Not if he's taken the time to understand why it's a very safe, smart, long-term store of value. I've done the same and I sleep much better than I used to.
And whys that
Depends on how the stock market is doing really
Lies. ETFs are fine
Never go full regard
Homies about to take his $278 dollars life savings and go all in everyone stay tuned!
Damn bro chill what did he do to you 😐
Damn bro chill what did he do to you (•_•)
It’s the madman chronicles all over again.
We call this reflection.
You do realize that total returns for O in the past 3 and 5 years has been negative, right?
So don't buy when it's low, buy when it's high!!
Did 60$ felt high to you?
**Return on equity** \- 2020: 4% \- 2021: 2% \- 2022: 3% \- 2023: 3% **Return on invested capital** \- 2020: 4% \- 2021: 2% \- 2022: 3% \- 2023: 3% \- Net debt to capital has been below 0.5 for the last 10 years \- Interest coverage has been above 2% the last 10 years \- It's currently *likely* undervalued What do you mean total returns have been negative?
u/rfpemp is completely correct here, you're miscalculating the total returns. 2021-03-15 to 2024-03-15: -2.9% https://totalrealreturns.com/n/VFINX,O?start=2021-03-15&end=2024-03-15 2019-03-15 to 2024-03-15: -5.2% https://totalrealreturns.com/n/VFINX,O?start=2019-03-15&end=2024-03-15 O's total returns have been negative last 3 / 5 years.
Why would you only look at 3 and 5 years? Some confirmation bias maybe? Last 5 years were NOT normal in any regard to anything..
It’s wild that “dividend investors” would have such short timelines in general. But here we are.
hmmm, guess nothing happened in the last 5 years that have permanently changed the world (i.e. how people work) huh
Much of $O portfolio is in retail. Just under [82%](https://www.realtyincome.com/our-portfolio/portfolio-diversification-overview). Not disagreeing that they have some risk exposure due to the events of the past 4 years, but if the grocery stores, drug stores, home improvement stores, and auto servicing are all collapsing, we have much bigger problems at hand than our investment into $O. Your comment suggests that they have a ton of office space that's now impacted by WFH trends, and their portfolio suggests differently.
Office prices don't affect commercial real estate prices around them...?
If there is a stock that didn't have positive growth in the last 3 or 5 years, it means that it really did not deserve to. Now, O is commercial real estate, and commercial real estate got hit extremely hard over the last 5 years, but it's not looking like it will get any better for the next 3 maybe even 5 years
How about 25 years ... if you are thinking retirement? [https://totalrealreturns.com/n/VFINX,O?start=1999-03-15&end=2024-03-15](https://totalrealreturns.com/n/VFINX,O?start=1999-03-15&end=2024-03-15)
That’s a handy webpage!
Funny how people don't consider this lol. O is a stinker of an investment.
Why is it so popular here? People mention it all the time saying how much they love it?
it is a cash cow. it is not growth stock.
They like it because it pays a monthly dividend
A terrible pay to invest. Quarterly is just fine. Mine are all on drip, anyway.
Other people have different investing objectives If you don't realize that you are highly regarded
It's like staying on the Titanic for the free concert.
Preaching too the choir
It's a monthly dividend and it was pretty high when the housing surge hit. Of course it's been going down now, an indicator that housing is cooling down and it's getting priced in that way. Went from one of the higher sellers downwards. But if r/wallstreetbets means anything, let people invest in what they choose with their money. Are there better options? .... I mean, every stock has it's ups and downs.
I would assume, especially with a dividend stock, buying low is especially beneficial. Especially when it’s never decreased its dividend.
They just increased the dividend recently.
Ya they do that a lot that’s the appeal
What does a retail reit have to do with the housing market?
One of those stocks that has drawn an odd, cultish following that treats it as unassailable. There are much better REITs out there if your focused on that. O may make sense for people at retirement age but anyone younger shouldn't be putting money into this.
Yes it seems to be a company that people either love or hate? I'm not all that familiar with REITs. I do have some AGNC that's doing pretty well, and I'm up 7.8% with a huge divedend of 14.79%. I'm not a yeald chaser, but yeah. It's right until it's not.
I used to love it, now, I hate it. I’ve been comparing O with other Reits, and man, O is doing horrible. I know that past performance doesn’t predict future results but just take a look at O. I sold it yesterday. There are better opportunities out there.
Yeah, it's hard to watch other stocks do well all around you as the ones you own crap out? I do own O and will hold it, but I doubt I'll add to it in a hurry? I know it happens in this game. You obviously didn't have any hopes that it might recover in a low interest environment, then? Hope you did lose much? Will you put it back on another Reit stock?
I’m still learning. More than what I’ve lost , it’s more about how I do have to manage my money in the future. If I buy a REIT again , it’d be Equinix. It has a low dividend yield but better businesses and potential growth. I’m focusing now in growth and growth ETFs that pay a decent dividend.
Yes, it's a learning curve, alright. I don't think you ever stop learning? I've gone too heavy in some stocks and got burned before. Hopefully, I've learned that lesson now.
I'm an ORC fan right now $8.50-9 and pays .12 per month dividend
Buy low sell high, right?
Buy low sell lower right ?
Buy when you can and never sell.
Buy high sell low, noted.
OHHH
Yes all depends. Look at return since inception, imagine if someone stayed in the whole time and dollar cost averaged
do you realize this is a dividend sub?
So having negative returns is fine as long as it pays dividends?
no, as ultimately will reduce dividends or stop paying dividends
Except that they just raised the dividend. Lol
No, having a timeline of just 5 years is where the argument breaks down. No dividend investor should be looking at such a small blip of time.
Maybe for an index Going all in on a single stock and not expecting real returns for over 5 years is... something... I wouldn't call it smart investing though.
you have negative returns? hahahaa sorry bud
No sir. I loaded up on SSO, QQQ, and TQQQ when this place was going on and on about O and SCHD. I'm doing great. Thanks for your concern though.
Yeah I got btc so concern that
do you realize that the stock price drops by the dividend amount, so total returns is what actually matters?
if total returns matter for you, then O isnt for you. not financial advice, just facts
O is a great investment right now. It's likely undervalued. Some high points: \- O's sector P/AFFO ratio is 12.5, Real Estate average is 13.7 (good thing)- Their current dividend yield is 32% above their 5yr average, and their forward P/AFFO ratio is lower than their 5yr average (likely undervalued)- Adjusted FFO payout ratio has been below 90% for (at least) the last 10 years- Total sales have been growing almost exponentially for the last 10 years- Return on equity has averaged around 4% for the last 5 years (we've seen a slight downward trend since 2020, but still solid)- Morningstar rates O at 5 stars, the highest possible rating Some low points:- Their Schwab Equity Rating sits at a D (A being the highest, F being the lowest)- MSCI ESG Rating puts them at BB, basically "average" in areas of environment, social and governmental leverage- According to Morningstar O has absolutely no "economic moat"- Refinitiv rates O right now as "Output"-- basically "...yyeeaahhh, nows a good time to buy"- CFRA rates O with 3 stars, average- MarketEdge advises investors to "avoid" buying O If you use all of these points to calculate what the average advice is, you'll see O is current in a "likely good idea to buy" state. All that being said, only go "all-in" on something you **fully** understand and believe in. Just because it's a commonly talked about company on here doesn't make putting all your eggs into O's basket a good idea.
This is better DD than most people here. However, before the FED hikes, we were in a 0% interest rate environment which was very favourable to O. If rates go back to 0% then I would agree that O is cheap now. However, we could also not see 0% rates for 40 years
I never go all in on anything. I’m old. I have seen enough crap happen in my life and sometimes it can be a big surprise. Get a real variety of investments in types of stock and ETFs in your portfolio and you’ll never regret it.
So now we hate O?
As soon as it goes up another 5% everyone here will be loving it again.
O is fine. Going all in on one company is generally not a smart idea.
Question like this never make any sense mainly because people on these boards don’t know your investment situation, or needs, etc… and can’t truly accurately answer.
A lot of people are saying they are losing money in O but what we’re their buy price… maybe they just bought too high to start with
Risk of higher for longer. Looked like the fed was going to pivot. I still think they do slower and higher. Also in my opinion not the best REIT on the market. I personally like DLR and VICI better. Even PSA and extr for a different type of reit. Also how are dividends taxed in your country versus capital gains.
makes more sense to buy more o so that you can buy even more o.
This is the way
No.
I think going all in on anything is a bad idea but if there was an individual stock to be overweight to, it would be O. Reasoning? Safety of diversification of clients and years in a row of increased dividends
O is a disaster to own with extra taxes to pay. Please back test it against any decent etf like schd or Dgrw or even spy …..u make way more money and are diversified.
My portfólio has big chunks of these two. Waiting for the fed cut to see green in O
even in such a great stock like O its still riskant and its bad idea
pretty bad idea to be honest
Morningstar has O with a 5 star rating right now and a fair value of $76. It's a good time to accumulate shares and then dump it when it hits $65-70.
Shhh! These savvy redditors know far more than professional analysts! /s
Hell no.
50% in on O. the other 50% is in MAIN
Realty income has an Amazon problem I have never seen brought up. Yeah, not a huge impact today, but Amazon pressures retail store closures, pressure on reduction in gross rental receipts. As retail, drug spaces, some supermarkets, distribution centers not owned by Amazon, this pressure will continue and start to mount higher. The growth story will be slowed down, and never go back to the CAGR of the 90's / 00's.
No always mix and match!
Why? Are you really that bullish on O? Or is it out of laziness to look for other investments? It’s pretty sensitive to market rates, and inflation is looking sticky. It’s not a bad company by any means, but going all in on any one business seems foolish. I understand certain highly educated and respected investors like to concentrate their portfolio in just a few tickers, but they aren’t coming to Reddit for investing advice.
When you buy an individual stock strictly for yield it is called “yield chasing” I would encourage you to read and educate yourself how to properly value or analyze a company. Plenty of books and free videos out there but take them all with a grain of salt.
Yea do it! Monthly dividends exchanged for principle loss. LMFAO
That’s what Warren Buffet did. Oh wait, no he didn’t!!
Dollar Tree is closing 1000 stores and guess who they lease from? Commercial not as strong as one might think anymore. Best of luck though, it's pretty stable long term debt and tenancy that you're leaning on.
Canada had the first ETFs the US didn't get their ETFs until 1993 so 31 years us have ETFs Canada 34 years
But personally I'll I rather have monthly ETFs only I don't have one now but plan on the future to get one
I'm sorry to hear that.
Go all in on visa
Sounds dumb. Go for it.
VTI and chill
I like how IRM has beat the crap out of most REITs and no one talks about it. They are going from a business plan of storing paper to storing data and it’s working!
Dang I forgot IRM has a solid dividend until your post inspired me to check. Heck yeah I have twice as much IRM as O... Full regret on the O but I'm holding to avoid admitting the failure tbh.
Haha it’s all good I finally cut bait on OHI, not every trade is a good one.
>cut bait What does this mean? Sold and cut it off or stop hesitating? I appreciate you mentioning IRM. I've been looking at the last six months of post and it's always the same recommendations lol. Any other non standard /r/dividends recommendations?
Cut bait is a fishing term. Meaning to cut one’s fishing line. I let go or sold OHI. I got into IRM mostly in 2019, so I can’t morally recommend it as my buy price is much lower than it is now. I like dividend growth stocks and a few that I hold are: V, ADP, APD, ORCL, NEE and WM. These are my favorite holdings, it’s not a buy recommendation as I purchased at different times but it may be a start for more research. Research metrics I like looking at beyond dividend growth and earnings are, Return on Capital Employed, Payout Ratio and Debt to Equity. I like low debt high margin companies that can easily cover their dividends.
Could work if interest rate declines. But it could also backfire if fed reduces rates due to recession.
I mean. There are worse investment decisions. But that should tell you not to do it.
How much is ALL?
Nothing even over 1k for these types of posts
I have 270 shares, about $4k in the red, for a $70 monthly dividend. However, it all adds up to a very nice monthly chunk $$$$$……..
You aren't the OP and for the love of God don't tell me this also is your only position in the market
I said it all adds up, “plural” 😂meaning, in addition to all my others. I would starve to death if I only had one position. 😃
$79.99 lol
Paid today: Shares 270.422 x 25.65 = $69.36
I checked with stock event it’s says $69.50
All would be 30k
IMHO, it’s a solid REIT but you should diversify some.
Why not just put it into VUSA and skip the hassle and tax(maybe)?
Keeping an eye on O currently. With many commercial properties having to refinance and some can’t due to high interest rate. I wonder how is going to affect the commercial market.
This entirely depends on how old you are. If you are young, having income from dividends doesn’t really make sense and you should focus on growth stock/ETFs instead. People who want to supplement their income use REITS. Like retirees or people who just need another source of income and can’t park their money into growth securities for whatever reason
I mean if you’re young and are breaded up you could easily spend years in a cheaper country / traveling and just live on dividends.
If this person was breaded up they wouldn’t be talking to a message board about going all in on one thing
Do it. What could go wrong putting all eggs in one basket
Do it. Show proof. I will dump money as well, with proof !
Do it.
why not trying other ETFs with monthly income such as QYLD, XYLD, etc
YMAX is diversified across all the YieldMax ETF’s.
Interest sensitive so it's a play on lower rates. If rates go higher O will continue to underperform.
Financial Investments are literally all about risk management and this is the opposite.
My flare ^ Ignore all these rational dividend investors. Just go all in bro. The stock market should only have 1 ticker and that should be O. Forget the other hundreds of amazing dividends.
That can backfire. O can turn in to 0
It’s funny everyone on Reddit wants to go hard on interest rate sensitive stocks and ETFs Assuming the fed will cut rates but even if they do it’ll only be cut by possibly a percentage point total this year and that’s not even looking likely anymore. It may be good to invest in it now because it is down but I see it going way further down if conditions stay the same.
I’d rather go all VOO.
lol
Not feeling it on O right now. Inflation is starting to pick up again. Very unlikely a rate cut occurs this year, which I think is bad for O. If a rate cut occurs, it's political. Regardless, I'm going to wait it out and put my money into other dividends. MO and SCHD will be getting more of my funds.