bad news if you were holding that issue, but good news for the company and showing some good sense. Maybe they will take part of that savings to bump up the common dividend
over the last ten years or so the dividend rate has mostly been in the 4.5%-6% range. Lower when the stock price rose briefly to $50+, and a little higher in 2008-2009 .
Well the conventional wisdom is that rising interest rates hurts all stocks especially those that pay dividends and have to borrow money. But since the rising rates comes with a better economy, and O depends on tenants paying the rent then a better economy helps the bottom line. My feeling that going forward the company will continue to be able to pay its dividend and increase it every year as in the past. In past years, once a year the have been increasing one larger amount and project that to come out in December.
Right now I have a portfolio of 30+ holdings. Ranging from 4.5%-about 11% The total comes out to be about 7%. . O is one part of that. Everyone has to decide their risk level and what yield and risk they are happy with.
The first was the routine 0.2% hike announced by Harvest holding Realty Income O on Tuesday, which runs the company's streak of uninterrupted dividend growth to 68 quarters. Last week I noted that I was a bit disappointed that Realty Income didn't provide us with a bigger once-a-year dividend hike in August, in line with past practice. But after receiving an intriguing tip from a DividendInvestor subscriber, I decided to investigate the matter a bit further with investor relations officer David Butterfield. I learned that with recent changes in management, no one could remember why the extra dividend increase of a year was contemplated in August--as opposed to December, by which time the projecting and planning for the upcoming year would be finished. So, starting this year, Realty Income will consider its extra dividend boost for the year in December rather than August.
Based on the recent growth in Realty Income's adjusted funds from operations (AFFO, the best metric of cash generation by a real estate investment trust) and what should be a payout ratio nicely below the company's 85% target by the fourth quarter of this year, I'm guessing that the dividend increase for 2014 as a whole will be in the range of 4%. This outcome would be right in line with my long-term estimate and rounds out an attractive total return prospect from the stock's current price, which has lately slipped back below our $44 fair value estimate and now yields 5.2%.
good luck on that one. As you have said its just a small position. As an aside, have you noticed that the Donk hardly gets any response any more. More and more have him on ignore. So mostly just his nonsense, but no give and take. It would be great if we can keep that up.
I will be using the increase to buy a new yacht. Or maybe $100 million of tax free bonds that pay 21%
well anyway it was a nice 4 weeks without him. I guess there is only so long they can keep him locked up for treatment.
If you look back the past few years, it looks like Sept-OCt is the time to BUY. That is usually the low point and trades higher to about June of next year. Again what do you base you estimate on? Any facts?
How often do BDC's issue secondaries ABOVE NAV? Not often. I'll keep collecting the 9+% yield. Its one of the largest holdings in my portfolio
What do you mean by 'in progress'? And what do you see that would cause the price to fall below $26 as the tax (earning) season approaches?