The time has come to sell off my stake in Realty Income Corp (O). This is the first sell in my portfolio and of all the investments I have, I never would have guessed this would have been my first sell. A staple of consistency and tremendous capital appreciation, Realty has all its mojo working. However, that mojo has made the stock pop 17% to start off the year.
They reported good growth numbers as of their last quarterly earnings statement but with a 21 P/FFO ratio currently, I think its a good time to let this go.
Other REIT stocks, namely healthcare REIT's are down significantly this year (see OHI, HCP). I firmly believe that O has gotten a bit ahead of itself here and there are other opportunities that could use some more capital.
I sold 48.3150 shares at $60.65 totaling $2,923.24. I will lose $9.59 per month in dividends or $115 per year.
With this sell, I now have some decent ammunition in my "BB gun" and will be looking to make a purchase soon. Realty had a dividend yield of just 4% meanwhile a REIT like OHI has a yield of 8%. I could look to using half the sell to purchase OHI and the other half to get a faster dividend grower like MMM or AAPL and will come out ahead.
This by no means I will not be an owner of Realty in the future, but I plan to be one at a cheaper price!!
We shall see what happens, but what do you think? Good sell? What are you buying next?