10-01-2013, 01:32 PM
(10-01-2013, 11:36 AM)InspBudget Wrote:(10-01-2013, 11:01 AM)Horace Cugle Wrote: I'm 62 and retired, not taking any money from IRA's until RMD's kick in. O would probably be a good stock for me to start getting into.
I'm having some trouble with it though because I'm not drawing income from my investments yet. Yes it's had 25% knocked off the price and that makes it attractive but you need a microscope to see the dividend growth, and if it's in an IRA you can't spend the big dividend anyway. Regardless, it's on sale and it's a quality company, I just don't think it's suitable for investors who value DG over yield.
One other thing....I would imagine there might be some heavy tax loss selling as we approach year's end. Maybe something to think about.
Horace,
You are absolutely correct in that DG is small with O. however, look at the years where the dividend has been sustained, with many of those years seeing small increases. They add up over time.
O has a strong tenant base, and is well positioned as their locations are in good, high traffic areas for the most part.
The most recent glitch where one of their larger customers, a chain of Buffet Restaurants, went bust was a year ago, and even then O recovered pretty fast, and the small DG was not affected.
If you hold O, you can rest assured there will be little risk of a dividend cut. And small but accretive divy increases over time.
The selloff has created a great opportunity, I hold some O now, but really looking to add.
As you have said, there may be tax loss selling later this year. I hope to get more at around $35-$37.
I like O but wouldn't buy above $36 currently. I'm guessing we might see some more REIT pain once the fed starts tapering.