1Wk·

Advise

I'm considering buying 10 shares of $O (+0.05%) . Is this a smart idea? Cause I've seen the price going down. But I don't know if it is going to come back up. (I'm young searching for great dividends, so I've a long term strategy). Thanks to everyone

20 Comments

Capt‘n@Wuestenschiff

1Wk

If you’re young you shouldn’t be looking for great dividends but for great growth….

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Richard@trabajohombre

1Wk

@Wuestenschiff why? Imo it should be about total returns. Dividends aren't just for retirees

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ClaraLvt@ClaraLvt

1Wk

You are taxed on dividends so a good grow stock will easily beat the dividends

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joni_oskari@Mr_Sisu

1Wk

@ClaraLvt Not if you have a share savings account. Dividends and stock sales are taxed only when you withdraw money from the share savings account to your bank. I'm not sure if every country has a similar system, but that's how it works here in Finland.

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Capt‘n@Wuestenschiff

1Wk

@trabajohombre in my opinion the returns are a lot higher selecting stocks that may grow (2-10x) instead of those that give you a dividend of 5% but won't grow that much anymore. especially if you have 4 decades to invest. - that being said, I do think and understand it's a strong motivation getting those payouts every month. I'm just saying it's not rational at a young age if you are aiming to grow your wealth.

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pyrler@pyrler

1Wk

I like $O, have a look at $MAIN and $LTC as well if you want cashflow..

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Ata@Atacama

1Wk

I'm 60 and I go for dividends too. And $O is a good invest. Dividends are very motivating and I set a target to reach with dividends.
Aiming for 1000€ net dividends a month. But knowing this will take a while, I try to reach 100 this year and maybe 150€/month next year 😎

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Silas W.@DynasticGrind

1Wk

***If*** you are going to buy a REIT, this one is most-definitely the most battle-proven one out there, with a relatively strong tenant base, as well. If dividends are not your focus, I personally would stay away from REITs altogether. Why? Because you either prioritize growth or cash flow when push comes to shove. Both at the same time is incredibly hard to master and you've got only one brain to keep track of your portfolio. Going for both isolated growth and isolated dividend companies will likely give you a conflict of interest in the future, as you have only limited resources to pour in during downturns. If that happens, deciding between growth and dividends is rather difficult and REITs are definitely much more of the latter. Now, there *are* obviously companies out there that go for both to some degree, but even those might cut their payouts when things get ugly , in order to not minimize shareholder's equity. I see absolutely no issue with a diversification towards dividend-heavy papers, quite the contrary -But eventually, you must go for either one or the other for the time being.

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Peter@PeterBKK

1Wk

Although growth stocks are probably the more sensible choice when you have a long time horizon... if dividend stocks keep you motivated to invest and grow that monthly income, they can be valuable to you to keep investing. They also give a little piece of mind in times when your portfolio value is going down but you see your dividend income stay the same.

Myself I have a mix of etfs, growth stocks and also dividend stocks to keep me motivated. Am currently almost at 600 euro a month in dividends and I always love to see that number go up 😀

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Arco@Dividendbelegger

1Wk

About to add to my position now that it's under $52. They should provide a steady rising safe dividend. I am 57, investing for income instead of growth.

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S@ThePower

1Wk

There is nothing 'wrong' with having $O in your portfolio. The dividend is great. The CAGR not so much, but seeing monthly dividends come in helps the motivation. From growth perspective you could even argue that in a lower interest environment $O would grow significantly in value, as their business is inherently hit hard by rising interest rates. If rates would drop (they will but likely less then expected before) there is good uplift potential.

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Michel V.@Noord26

1Wk

Looking for great dividend for long term is looking for a great cagr. Not yield. Look at msft, zts, elv..

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Jan K.@user250b43bdb9764a62

1Wk

Just value the company and decide what a fair price is. Use FFO instead of EPS in your valuation.

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Roony@Roony

1Wk

Comment was deleted

financial_wizard_1039@financial_wizard_1039

1Wk

@Roony Can you give me some ideas?
My idea was to buy dividend's stocks, so reinvest the earnings into other big companies

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Silas W.@DynasticGrind

1Wk

@financial_wizard_1039 ''so reinvest the earnings into other big companies'' That's not what a REIT will do for you. REITs are awesome when you mostly reinvest the dividends back into them. If you want to go for a REIT like $O , go for a ''no jabs, only kicks'' approach. Go big at that thing and then let the dividends maintain the position, so you can keep adding to it without injecting too much ''new'' capital. A one-off purchase makes no sense in my book.

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financial_wizard_1039@financial_wizard_1039

1Wk

@DynasticGrind thanks very very much

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Silas W.@DynasticGrind

1Wk

@financial_wizard_1039 You might go for a little less yield, too. Yield is not everything when the dividend growth is right. Also easier to see through during turbulent markets. A lot of these will be ''boring'' stocks, but it's all not so boring when earnings come rolling in, which all of this is about, eventually.

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financial_wizard_1039@financial_wizard_1039

1Wk

@DynasticGrind Can you tell me something that is great to buy this year? I really don't know...

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Silas W.@DynasticGrind

1Wk

@financial_wizard_1039 Right now, virtually everything is at an all-time-high, but there are outliers worth looking at. Such might be $JNJ , $NESN , $PEP , $GPC ,... All of these and depressed due to multiple factor pressure (price competition, fear of tariffs, etc...) but are resilient in terms of capital reserves. Keep in mind that markets and valuations are not necessarily rational, and that you must be the judge whether or not there is rationality behind those dips before you choose to buy anything. I personally am an advocate of consumer defensives and I am pretty much overweight on them (36% of my total portfolio, as of now) , but you might not be the kind of investor who is into that... Lately, tech companies such as $META and $MSFT have also been paying dividends while showing resilient growth over the long period. There are many ways and approaches to investing that may result in great success. *What* to buy, I cannot tell you, obviously, as I have basically no idea what's most important to you or will/might be 10 years from now.

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