Thursday, December 15, 2016

Recent Stock Purchase

Hello everyone,

While this market is making it somewhat difficult to find good value, I still want to nibble here and there to keep my portfolio rolling.  Today I purchased a company that I sold months ago, as I felt at the time it was overvalued so I took a profit with the hopes it would fall and I'd repurchase.  Today was that day!  That company is Realty Income, O, which has fallen considerably from when I sold it at a tad over $70.  I've been hoping for a nice drop in the REIT sector, along with a short drop with the FED interest increase.  It didn't drop too much with the FED increase but it's still at a good point with it's drop over the past few months.  I decided to only purchase a small position, with hopes it will continue falling and I'll add to it in the weeks ahead.  Here is a summary of the purchase:

Realty Income Corp. (O):
Shares: 20
Purchase Price: $54.05
Commission: $0
Total: $1081
Forward 12 month Dividend Income: $48.72

Overall, I feel it was a good starting point to get back into an O position.  I purchased these shares in my Roth account to maximize tax value with a REIT.  I still have some cash sitting in my Roth, so I may add more shares with any downward movement.  Well that's it for now and thank you for stopping by!

6 comments:

  1. Many will tell you that you were foolish to sell the stock, then buy it back. but not this guy ;-). Nice move.

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  2. Buy low and sell high is the way to go. I think O's valuation was a bit out of touch with reality in the 70s so I can see why you sold it and it's gotten back to a more reasonable valuation now.

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  3. Great purchase! I'm transferring some money to my IRA to make this exact purchase in a couple of days. I've been looking to get some more exposure to REITs and, as you know, it is much better to own them in a tax-advantaged account.

    Scott

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  4. REITs still look interesting. While I have my eye on the health REITs I see that O is a good pick up. Very popular among many of our fellow investors too. I always say it's nice to read about the buys as the market treads record highs.

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  5. I like Realty Income (O) a bunch and own it myself. I do like the monthly dividends they pay. Have fun with the shares.

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  6. O is part of my CORE holdings which I'm always adding to it along with the monthly DRIP.

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