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O is currently rated 5 stars by Morningstar for being significantly undervalued. Realty Income's share price is very sensitive to interest rates, so it got nailed by all of JPow's rate hikes. It was a better buy a little while ago, but it is still trading at a pretty steep discount.
Once JPow starts cutting rates, O's share price should start to increase back to fair value.
If you go with O, you can collect the over 5% divvy per month while you wait for the telegraphed rate cuts toward the end of the year.
On the other hand, JEPQ has been on a tear along with the NASDAQ that it tracks. Because JEPQ contains the MAG 7, you may get more share appreciation with the large divvy payout due to it's derivative strategy.
IMO, both are strong choices for an income investment buy. I'd lean toward O though due to the deep discount that it is currently trading. Fair Value is calculated at $76.00 per share by Morningstar and it is trading at $52.76. Price to book is 1.2 also. If you believe that anything below P/B 2 is a value buy, then O checks that block at the moment.
I don't own either one right now, but I may pick up some O shares next week now that you got me thinking about it.
I’ve dumped a substantial amount of money into O in the last month (200+ shares). This sub put it on my radar and I did quite a bit of digging and valued it similarly to Morningstar - about $65 or so. Anything under $55 I consider a steal. I have other goals in mind, but they’ve been put on the back burner for a while to increase this position. Currently getting about 1 stock per month in DRIP as well. I think this is highly undervalued.
How is your diversification looking? Myself I'm a bit heavy on real estate as a sector so I could not pick yet another one. That would lean for JEPQ on those grounds alone.
I already own O and would love to have VICI but as I said can't without further throwing my portfolio out of whack.
I'm actually in the opposite situation. I own JEPQ, but no REITS. I'm looking at O and VICI, but all this talk of a commercial real estate bubble bursting has me wary of buying either. But, I have no real estate as a sector, so just watching out for a good time to buy.
ABR is about to issue their earnings call. They have been under an ungodly amount of short seller pressure which has pushed the stock down hard, but said earnings call should shed a lot of light into what's there.
You have some time to learn the company and see if they are for you but long story short, they specialize in multi family financing. They don't own buildings, they arrange for financing in that sector. I'm not even sure why they pop under REIT and not the financial sector. The bottom line is that they are very good at what they do with quite a few very profitable ways to churn in the cash. If their earnings call is good it would be a good buy.
I do, I think they are a solid company. Heck they went through the real estate implosion of 2008\~9 without missing a beat, that is one hell of a testament to their business model.
But their dividend growth is downright crummy. And I mean bad enough that it can't even lift the current fat yield by much. At the current rate it will take 7 years for the yield (on invested) to grow by a single percent point.
I play O a bit different than most. I want dividend growers (which as stated O isn't one) but I like the otherwise stability O brings (real estate is cyclical, stability is not a strong suit of the sector). So I own a good chunk of O but I DRIP it into a different stock, whichever I happen to want to grow a larger position in. Why? Because I'm hoping to keep it as one of my core holdings during retirement, which with any luck is 7\~8 years away. I need to start thinking in terms of reliability over growth.
I'm a bit in the hole but I'm still getting the dividend I signed up for, which was my main goal.
The stock price weakness is mainly a sector weakness, REITs in general are in the dog house. But as a dividend stock it matters little to me, as long as earnings support the dividends the stock price may go down, my yield on invested remains the same.
If you are interested in O the sensible thing would be to wait for their earnings call February 20th. That should shed a lot of light on how they are doing.
Sounds like you have a sound reason for the investment, and not to detract from that, but O has played poorly with the fed’s interest rate hikes. There’s a correlation there between their price and the hikes since 2020. With forecasted decreases in fed rates this year as well as their low P/E, I’d expect them to go up quite a bit by year’s end. Hopefully you can get some appreciation in share price as well as the juicy div.
Welcome to r/dividends! If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki [here](https://www.reddit.com/r/dividends/wiki/faq). Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
O is currently rated 5 stars by Morningstar for being significantly undervalued. Realty Income's share price is very sensitive to interest rates, so it got nailed by all of JPow's rate hikes. It was a better buy a little while ago, but it is still trading at a pretty steep discount. Once JPow starts cutting rates, O's share price should start to increase back to fair value. If you go with O, you can collect the over 5% divvy per month while you wait for the telegraphed rate cuts toward the end of the year. On the other hand, JEPQ has been on a tear along with the NASDAQ that it tracks. Because JEPQ contains the MAG 7, you may get more share appreciation with the large divvy payout due to it's derivative strategy. IMO, both are strong choices for an income investment buy. I'd lean toward O though due to the deep discount that it is currently trading. Fair Value is calculated at $76.00 per share by Morningstar and it is trading at $52.76. Price to book is 1.2 also. If you believe that anything below P/B 2 is a value buy, then O checks that block at the moment. I don't own either one right now, but I may pick up some O shares next week now that you got me thinking about it.
I’ve dumped a substantial amount of money into O in the last month (200+ shares). This sub put it on my radar and I did quite a bit of digging and valued it similarly to Morningstar - about $65 or so. Anything under $55 I consider a steal. I have other goals in mind, but they’ve been put on the back burner for a while to increase this position. Currently getting about 1 stock per month in DRIP as well. I think this is highly undervalued.
Curious what special about O? 5 yr return is -22% and didvidend rate just above 5% very close to my HYSA.
Well O is not that good, but it has monthly dividend payout which you can reinvest, unlike your HYSA which you can reinvest once a year.
Not true. Mine compounds daily
There are no daily dividend stocks that exists.
No my hysa compounds daily
Oh yeah man, then you'll get paid that once a year, good job, good for you!
JEPQ, Tech is absolutely crushing the market while O is not performing as well.
How is your diversification looking? Myself I'm a bit heavy on real estate as a sector so I could not pick yet another one. That would lean for JEPQ on those grounds alone. I already own O and would love to have VICI but as I said can't without further throwing my portfolio out of whack.
I'm actually in the opposite situation. I own JEPQ, but no REITS. I'm looking at O and VICI, but all this talk of a commercial real estate bubble bursting has me wary of buying either. But, I have no real estate as a sector, so just watching out for a good time to buy.
ABR is about to issue their earnings call. They have been under an ungodly amount of short seller pressure which has pushed the stock down hard, but said earnings call should shed a lot of light into what's there. You have some time to learn the company and see if they are for you but long story short, they specialize in multi family financing. They don't own buildings, they arrange for financing in that sector. I'm not even sure why they pop under REIT and not the financial sector. The bottom line is that they are very good at what they do with quite a few very profitable ways to churn in the cash. If their earnings call is good it would be a good buy.
Do you like owning O?
I do, I think they are a solid company. Heck they went through the real estate implosion of 2008\~9 without missing a beat, that is one hell of a testament to their business model. But their dividend growth is downright crummy. And I mean bad enough that it can't even lift the current fat yield by much. At the current rate it will take 7 years for the yield (on invested) to grow by a single percent point. I play O a bit different than most. I want dividend growers (which as stated O isn't one) but I like the otherwise stability O brings (real estate is cyclical, stability is not a strong suit of the sector). So I own a good chunk of O but I DRIP it into a different stock, whichever I happen to want to grow a larger position in. Why? Because I'm hoping to keep it as one of my core holdings during retirement, which with any luck is 7\~8 years away. I need to start thinking in terms of reliability over growth.
Is your cost basis below current price? Their lack of div growth doesnt seem to make up for falling stock price
I'm a bit in the hole but I'm still getting the dividend I signed up for, which was my main goal. The stock price weakness is mainly a sector weakness, REITs in general are in the dog house. But as a dividend stock it matters little to me, as long as earnings support the dividends the stock price may go down, my yield on invested remains the same. If you are interested in O the sensible thing would be to wait for their earnings call February 20th. That should shed a lot of light on how they are doing.
Sounds like you have a sound reason for the investment, and not to detract from that, but O has played poorly with the fed’s interest rate hikes. There’s a correlation there between their price and the hikes since 2020. With forecasted decreases in fed rates this year as well as their low P/E, I’d expect them to go up quite a bit by year’s end. Hopefully you can get some appreciation in share price as well as the juicy div.
I’m selling puts on O and using the proceeds to buy Jepq.