I want to retire early from the rat race and live from my passive income. My goal is to reach an income of 65$ per day or +/- 24,000$ per year in dividend income before or at my 45th birthday. Yesterday, I added 30 cents per day to my passive income or 110$ per year.
In order to reach my goal, I buy stocks paying growing dividends year after year. We call that strategy “dividend growth investing”.
Yesterday I bought my first REIT (real estate investment trust) with 110 shares of ARCP (american realty capital property) offering a current yield of 8% per year.
When a company trades at its 52 weeks low, I like to take a look at it and see if it’s an opportunity to buy at a good price or if it’s a stay away warning sign.
At 12,30$ per share, ARCP offers a juicy 8% yield on cost and is definitely close to its 52 weeks low. Recently, they bought 500 properties rented by Red Lobsters restaurants. Many investors were mad since Red Lobsters is far from being a popular restaurant these days…. They think that trouble may lies ahead and I think they are right.
But, I decided to buy shares anyway!
Am I stupid?
Well maybe… But, my investment horizon is… Forever… Or at least until I die. And even though Red Lobsters (the tenant) may not be the strongest tenant in the world, I believe that owning 500 well-located pieces of land in America can only turn out to be a good investment over the long term. And, real estate investment is by any definition a long term investment. Lands and buildings will appreciate and other tenants can eventually be found. Plus, while Red Lobsters is not the most popular restaurant these days, it still owns a well-known brand.
My commitment is small: 1500$. But it will bring me monthly dividends! And this is part of the fun. I enjoy receiving small deposits for doing nothing. They don’t come often enough yet. Monthly dividends is something I’m sure I will enjoy!
I want to keep some cash for the upcoming dip! Yep! I predict there will be a market pull-back anytime soon! (Don’t look under the table! My fingers are crossed!) 😉
In case, I still hold +/- 8k in cash to seize the kind of opportunities a pull-back could bring. I’d like to buy some KO, PEP, CL, CLX, PG, JNJ, WMT shares at better prices than at what they currently sell for.
Do you own REIT? Do you own ARCP shares? What are your thoughts about the Red Lobsters deal?
[author] [author_image timthumb=’on’]http://quityourdayjob101.com/wp-content/uploads/2014/03/ID-10050051.jpg[/author_image] [author_info]Hi, my name is Allan. I’m the masked blogger. Like you I’m a modern slave, prisoner of a 9@5 job in Corporate America. They told us when we were young that we would live in a society of leisure and that technology would permit us to work only a couple of hours per day. But we live in a society of stress and uncertainty. My situation could be a lot worse and I know it. So many humans are suffering on this planet. But a golden cage remains a cage anyway. At least, I have an escape plan. I will retire before 45 years old over my passive income. This is a dream that is so powerful that I will make sure it happens. To build my wealth, I mainly invest in undervalued dividend growth stocks. [/author_info] [/author]
Image courtesy of creativedoxfoto/ FreeDigitalPhotos.net