"O" Realty Income Corp

[EricL]

Another thing to consider is that with reinvestment of dividends you are actually increasing income from O by more like 9-10% annually rather than just the announced 2% growth rate. Considering O has grown dividends at a 4.6% CAGR since 2003 and has a current yield of 5.4% you are going to be growing the income pretty quickly. Or you can go the route that Alex discussed by collecting the dividends and directing the cash flow into new investments.

As always the case with investing, depends on your situation and tax structure.

I hold O in a 401K and am reinvesting the dividends into additional shares to let compounding work its magic.

[hendi_alex]

As Orchid and others readily point out, there are many correct paths to success. Depending upon age and stage there are also different needs, risk tolerance, and other factors that make each investor unique. We can all learn from one another, but no one's approach is likely to be a blue print for someone else. The individual preferences shown in this thread help to make that aspect extremely clear.