And what did I do? Exactly the opposite of what people usually do when everything is falling: I increased my holdings instead of waiting.
I added to three positions I already held:
🟢 Realty Income ($O (-0.33%) ) — 5.8% dividend yield and a 48.7% payout ratio based on AFFO. 674 consecutive monthly dividends without fail.
🟢 Gecina ($GFC (-0.59%) ) — 8.6% yield and trading at a 53% discount to its net asset value.
🟢 VICI Properties ($VICI (+0%) ) — 7.9% yield, 10.1x P/FFO, near 52-week lows.
And I’ve opened two new positions:
🟢 McCormick ($MKC (-0.71%) ) — 8.2x P/E ratio and 3.8% yield. Dividends have increased for 40 consecutive years.
🟢 NatWest ($NWG (-1.72%) ) — 8.8x P/E ratio, 14.8% ROE, and 5.1% yield.
All five are rated “OPTIMAL” by my system. That does NOT mean they’re perfect, so I’ll also tell you what concerns me about each one:
⚠️ VICI relies on Caesars and MGM for nearly 70% of its revenue.
⚠️ Gecina has negative free cash flow due to mandatory renovations of its buildings in France.
⚠️ Realty Income is highly sensitive to interest rates.
⚠️ McCormick is dealing with strikes and an active boycott against some of its brands.
⚠️ NatWest cut its dividend in 2021 and 2023: once due to regulatory requirements and once due to a one-time event that didn’t recur.
