I love investments paying me steady monthly income for doing nothing at all. Who wouldn’t?
Real estate investments can provide you that kind of cashflow but can take a lot of your free time to manage and select tenants, repair the “leaking toilet” and all other sorts of real estate problems.
Since I don’t like that kind of problem, I chose to invest in dividend growth stocks. But, I wanted an exposure to real estate and as such, I decided to invest part of my hard-earned money into Real estate investment trusts. I currently own shares of Cominar (cuf-un.to), a Canadian REIT currently paying a 7.8% dividend and American realty capital properties (ARCP) paying the same kind of dividend.
Today I added another REIT to my portfolio.
Higher current dividend yield usually comes with lower dividend growth. And since inflation is as sure as death and taxes, I wanted to find a REIT with good growth prospects to balance things out.
One of these REIT calls itself the monthly dividend company. It’s name: Realty income Corporation (O). It currently offers a 5.25% yield on cost which is not bad at all and its track record is pretty impressive. 530 consecutive dividend payments, 68 consecutive quarterly dividend hike, 77 dividend increase since 1994… And so on!
As such, I decided to buy 40 shares at 41.85$ a price that I consider fair. This adds 87.60$ to my annual dividend income or 0.24$ per day.
I could write a lot of things about Realty income corporation, but it seems that great minds think alike. Jason Fieber, one of the great bloggers that I follow has written a great post about “O” recently. You can read it here.
[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]
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