What I Am Buying Today.

[Kerim]

(09-19-2023, 08:04 AM)ken-do-nim Wrote:

(09-18-2023, 02:23 PM)Kerim Wrote: Just added a small bit of O.

I've looked at O before; dividend isn't that much higher than (web-based) bank interest currently, and it doesn't seem to have price appreciation going for it.  Dividend raises are small.  What's the thesis?

Thesis is just that it is an extremely well run company with very reliable and safe (well-covered) dividend and sometimes, like now, at a good yield. I'm happy to increase my exposure to real estate, especially when prices are depressed by interest rate action, which never seems to damage their business model nearly as much as all the doom and gloom. Yes, bricks and mortar retail is not in the best shape these days, and they could see much bigger headwinds if the long-predicted but yet-to-materialize recession does eventually hit, but this one is a very long-term hold for me. Moreover, if and when the Fed lowers rates to deal with any such recession, those bank interest rates could be fleeting, while I'm locking in this 5.7 percent yield for the long term. And it will just continue to increase. Yes, their dividend raises are small, but they (generally) raise every single quarter. If it drops more, I'll be adding more. This will never be a ten-bagger, but very content to park my money with O.

Happy to hear contrary thoughts!