Today’s Stock: Reality Income

A real estate investment trust (REIT) equity offers a straightforward business model. Investors buy property, rent it out to tenants, and pocket the profits. These profits are then distributed as dividends to shareholders. Since their inception, Reality Income have consistently declared 665 consecutive monthly dividends. Additionally, they are a member of the S&P 500 Dividend Aristocrats index, recognizing their long-standing commitment to increasing dividends for over 30 consecutive years.

My Thoughts 💭

A tried and true safe dividend play. This stock was a cornerstone of my personal portfolios when I was chasing dividend stocks.

At 61.6k sats per share (@ $92,473) that pays 3,490 sat yearly dividend it would take 17 years to recover the initial investment. Better than the other stocks but having lost principal owning this stock in the past it’s not a risk free dividend play.

PE:

Expected Growth :

Revenues and expenses:

Balance Sheet:

Dividend:

ZERO

Ownership breakdown

Leadership

Just like CWCO, these boomers are getting it! The fundamentals of this business are solid. The $3 billion in free cash flow is simply incredible.

While I’m not a big fan of the heavy debt, they’re leveraging cheap money to generate monthly rent payments. Thus the large cash flow they can use to pay their dividend. They have a strong history of never missing a dividend payment.

However, as a value investor, you’re definitely paying a significant premium to access that 5% yield at a PE ratio of 51.

I own shares and have no plans to sell or add to my position. But if you’re looking for a risk hedge to STRC and its enticing 10.75% monthly dividend, Reality Income is a safe and stable stock. It won’t make you rich, but you might even lose purchasing power in the long run. But you’ll definitely outperform those sitting in bonds.

93 sats \ 1 reply \ @Coinsreporter 9h

You mean 'don't basket all eggs in one'?

TBH, I was one to have a very scattered portfolio 5 years ago, then I consolidated all into land and property, then I came to realise Bitcoin power about 2020 and started putting income from these properties in Bitcoin. Your daily posts about stocks now make me think that I could have never sold my stocks investment and still buy Bitcoin, I still hold some in stocks, and also don't regret selling for property because it's all more than doubled in price in 5 years + I'm generating a regular income for my livelihood and to buy Bitcoin. Happy Than ever.

0 sats \ 0 replies \ @BlokchainB OP 6h

Yeah a lot of people did that and made out but everyone is different. I just think equities are a sign that we are still living in a somewhat capitalist economic system. While owning bitcoin is great we still need companies and people to pool resources together and bring products and services to the world! The last two stocks I did are companies who are cleaning water and providing shelter both things humans need to survive this harsh world. Investing in these companies make sense to me. AI isn’t going to replace water and we can’t live inside an AI home so both of these companies should be okay in the extreme long run (30-50 years) along side Bitcoin which is the money of the future!