Saturday, February 2, 2013
Realty Income(O) Dividend Increase
Just wanted to take a moment to recognize Realty Income(O) for its whopping 19.3% dividend increase in January. I meant to talk about it during my dividend income report. Here is a link to their investing page which has some good links as well. This company has some amazing numbers behind it when it comes to taking care of it shareholders. Here is a Seeking Alpha article discussing the dividend raise and the reasons behind it. Whenever I discuss this company, it always seems to be near or at its all time high, and I always caution it may not be the best possible buy right now. Its P/E is 51 as of today, which is extraordinarily high. So, proceed with caution, as always. However, its a monthly payer, has a 5% yield, has been raising its payout for a very long time, and seems almost fanatically obsessed with taking care of its shareholders. Its one of my core holdings, and I am not squeamish about buying more in the future.
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I noticed the increase as well. That's pretty amazing. I'd like to get some REIT exposure for O might be a good fit. Just curious, but isn't the PE ratio a fairly useless metric for REITs? And rather using distributable cash flow a better metric? I can understand the business models for most REITs, but valuing them is so much different from a PG/JNJ.
ReplyDeleteI hesitate to answer that question bc I am no expert on REITs...but I think your point is valid. I dont think you can go wrong buying O with a 5% yield, which is the highest its been in quite awhile. One thing to remember is usually the dividend increases are rather lackluster, sometimes just a fraction of a penny, so this big hike is rather abnormal and I wouldnt expect anymore like it for some time.
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