In this first post, I will be talking about Realty Income. What is Realty Income? It is a company that owns close to 5,000 properties in the United States. It is designed to bring income to its shareholders on monthly bases. It also has more compound interest compared to most companies that do quarterly. The main reason why I personally like this company is the fact that they pay a monthly dividend. This is my end goal of investments. Once I have enough investments to pay my bills, I can do what I want to do. Right now, I have one main revenue source which is my job. I do like my job, but I don't want to put in 20 years worth of work into it either.
Is Realty Income a good buy? The short answer is yes, it is almost always a good buy for that retirement type of stock. I believe that Realty Income will be around for a good more 20 plus years. Even with the volatility of the internet and housing bubble, they have been a steady investment. One might be able to get into Realty Income for cheaper but I don't really care about the price so much because once a person has invested money into Realty Income that first purchase will have a significant gain of the dividend rate if the company keep up with the increases of dividends. Short term, they have reduced their Cash and Cash Equivalents have been shrinking over the past three to four years. This is a concern but they bought more properties over the past few years as well. In 2015 they had a little over $40 million in Cash, in 2016 they had over $9 million in cash. In the most recent quarterly report, they have a little over $3 million. This is one of my things that I personally like to see a company have, is a strong Cash position. But do keep in mind most of their clients are in retail business, like big-name companies such as Walgreens, CVS, Dollar Tree, Dollar General and other well-known companies. They have a lot of mortgages and long-term debts which is almost always a downside for me, but their track recorded of being a monthly dividend company has been extremely well.
I hope that this analysis of Realty Income has help anybody, thinking about investing in Realty Income. I don't have any money in Realty Income but I do plan on buying some sometime this year. This is just my personal opinion and do your own research about any investment. All investments are risky even with a company that has an excellent track record such as Realty Income. Thanks for reading I hope that you have a wonderful day! God Bless!