Very detailed and informative video... started (O) in August 2023 and have gradually increased to 300 shares with average price of $54.00.... my dividend yield is 5.4%.. I also did 3 covered calls with a 6-8 month duration with an average 3.75% annual percentage rate giving me a combined yield of 9.15%.... I have a cash secured put with a $52.50 strike price expiring 12/15/23 .... I'll probaby stay at the 300 share level plus dividend reinvestment.... thanks for the video
Very glad you found this useful! We don't advise retail investors dabble in options, but some people have a much higher tolerance for risk than we do. The problem is that on the other side of those trades are typically algorithms that will always outperform retail investors in the long run.
Question: what do you think of a) the impact of increased rents and b) the increase in work-from-home on reits; the former impacting rent collection and potential for increased evictions and the latter on commercial office rents(return to office policies notwithstanding).
In the meantime, W.P. Carey cut its dividend, right? According to Quantigence strategy you are now you only left with 2 Reits, correct? Any replacement strategy for the stock - another REIT or other sector?
If you are a paying subscriber, please email us with your questions anytime - info@nanalyze.com. If not, you can purchase our report and find answers to your questions.
Glad you enjoyed the piece! We cannot emphasize enough the importance of the track record in distinguishing this REIT from others that don't have such a record. Once established, companies work very hard to maintain them and investors get to enjoy predictable increases in cash flows every year that help offset inflation. The problem with "fixed income" is that it's fixed. ;)
We haven't spent any time researching that one, but a cursory look shows that they earn income " primarily from investing in residential mortgage pass-through securities and collateralized mortgage obligations." We wouldn't want any part of that for reasons mentioned in this video: ua-cam.com/video/5weIQDT1EYY/v-deo.html
I found the size of their client Walgreen rather large. The business is doing awful and plan to close hundreds of stores. I haven't look at O entirely, but this is the first data that stroke my mind. I would want to know how they plan to replace those large surfaces.
Great question. We were thinking the same things as well. The the team at O should be well aware of the health of their largest clients. You'll notice in their investor deck where they specifically talk about Walgreens and their plans to open physician centers in 1,000 stores. Our video has a slide which points to their ability to identify the stores that are less likely to run into trouble. The ability to navigate the problems their clients might be having is what helps them achieve that 29-year dividend track record of increases. On the topic of WBA, we have a piece slated to look at how they plan to survive given the threat of Amazon and the fact the USA - for reasons we can't comprehend - lets criminals run riot in some cities and does nothing to stop them.
I like Realty Income. However, I think it is at best at a very small discount. The P/E is 41. Its peers are at P/E of only 17. Realty Income has a P/S ratio of 9.
One of my favorite Onion posts: “Economists Trace Great Resignation To Comedy Central Airing ‘Office Space’ Constantly During Workers’ Formative Years.”
Here's a contender as well. Bantu Tribesman Uses IBM Global Uplink Network Modem to Crush Nut. “I could not crush the nut by myself,” said the 47-year-old Ndeti, who added the savory nut to a thick, peanut-based soup minutes later. “With IBM’s help, I was able to break it.”
I don't get the endgame with REITs. O's stock appreciated 50% in 10 years, which is a lousy return, dilutes old shareholders through constantly issuing new stock, debt is sky-high and per definition is bound to a few geographies (REITs can't move production across the pond like other businesses) which is risky. Net income / assets is very low (eg. compared to McDonalds or Rio Tinto which all "do" something with their assets). It seems that REITs are drowning in debt and must go bust once the inflow of new capital from new shareholders stops. This seems like a dangerous long-term strategy. What am I missing?
Be sure to take into account total return, not just the stock price return. When you reinvest dividends, the performance is really remarkable over time (as seen on a slide in this video). Debt is a critical component of the REIT business model, and it's a competitive advantage if conservatively managed. The same holds true for other firms. This company has managed to not only pay but increase their dividend for 104 quarters in a row. Shoddy outfits don't manage to achieve such track records. Quality companies do, McDonalds being one of them as well. Only a handful of REITs have achieved dividend champion status, and those are the ones we focus on.
@@Nanalyze thanks for clarifying, but I remain sceptical. The compound investment thesis doesn't seem practical because of transaction fees (afaik it's not like a re-investing ETF). While payouts over a long time seem attractive, it doesn't help when the REIT suddenly goes bankrupt. There doesn't seem to be a good set of warning signs because all REITs have high debts, so I probably wouldn't know that a REIT is about to default until it's too late.
Good! You should always approach all investments with a great degree of skepticism. No broker should be charging you transaction fees for DRIPs. As for a REIT suddenly going bankrupt, that's far less likely to happen when a REIT spends a great deal of effort on making sure their renters don't go bankrupt as covered in this piece. Credit ratings agencies are the canary in the coal mine here. Our canary would be when they break the 104-quarter track record because annual might fall next.
@@cameronvincent Yes, looking at competitors is relevant. So what triple net lease competitor did you want to talk about? There's a slide in the video which lists them out.
@@cameronvincent We've seen your name around so we know you're a regular. ;) We appreciate that. So, please understand what we're trying to do here which is to keep the comments section on topic. You raised a real estate investment trust specializing in casino properties that was formed in 2017 as a spin-off from Caesars Entertainment Corporation as part of its bankruptcy reorganization. The total exposure of Realty Income to casinos is < 3%. It's true that casinos are typically impervious to macroeconomic headwinds, but that's a different conversation to have. 🎰🎲♠
![A Stock We'd Consider Buying [In 6 Years]](http://i.ytimg.com/vi/VGUytXkbnYo/mqdefault.jpg)
You need to be subscribed to this channel before reading the below comments. Sorry, we don't make the rules.👮
ua-cam.com/users/nanalyze
Very detailed and informative video... started (O) in August 2023 and have gradually increased to 300 shares with average price of $54.00.... my dividend yield is 5.4%.. I also did 3 covered calls with a 6-8 month duration with an average 3.75% annual percentage rate giving me a combined yield of 9.15%.... I have a cash secured put with a $52.50 strike price expiring 12/15/23 .... I'll probaby stay at the 300 share level plus dividend reinvestment.... thanks for the video
Very glad you found this useful! We don't advise retail investors dabble in options, but some people have a much higher tolerance for risk than we do. The problem is that on the other side of those trades are typically algorithms that will always outperform retail investors in the long run.
Question: what do you think of a) the impact of increased rents and b) the increase in work-from-home on reits; the former impacting rent collection and potential for increased evictions and the latter on commercial office rents(return to office policies notwithstanding).
We've been actively looking to make sure we're not overexposed to office spaces.
In the meantime, W.P. Carey cut its dividend, right? According to Quantigence strategy you are now you only left with 2 Reits, correct? Any replacement strategy for the stock - another REIT or other sector?
If you are a paying subscriber, please email us with your questions anytime - info@nanalyze.com. If not, you can purchase our report and find answers to your questions.
Grabbed em at 58 50 and i belive it hit 45 and i bought a few... the dividends go straight into redwire
We've written about Redwire on numerous occasions - most recently here: www.nanalyze.com/2023/09/redwire-stock-vs-terran-orbital-stock/
@Nanalyze thats a great article, thank you
@@Wildboy789789 Glad to hear you enjoyed it!
Great coverage, I've had an eye on them with the big dip in the REIT market, still like vici properties a bit better.
Glad you enjoyed the piece! We cannot emphasize enough the importance of the track record in distinguishing this REIT from others that don't have such a record. Once established, companies work very hard to maintain them and investors get to enjoy predictable increases in cash flows every year that help offset inflation. The problem with "fixed income" is that it's fixed. ;)
What are your thoughts on AGNC Reit?
We haven't spent any time researching that one, but a cursory look shows that they earn income " primarily from investing in residential mortgage pass-through securities and collateralized mortgage obligations." We wouldn't want any part of that for reasons mentioned in this video: ua-cam.com/video/5weIQDT1EYY/v-deo.html
@@Nanalyze Thanks!
I'm more of an Agree Realty guy
Some really strong revenue growth for sure
I found the size of their client Walgreen rather large. The business is doing awful and plan to close hundreds of stores.
I haven't look at O entirely, but this is the first data that stroke my mind. I would want to know how they plan to replace those large surfaces.
Great question. We were thinking the same things as well. The the team at O should be well aware of the health of their largest clients. You'll notice in their investor deck where they specifically talk about Walgreens and their plans to open physician centers in 1,000 stores. Our video has a slide which points to their ability to identify the stores that are less likely to run into trouble. The ability to navigate the problems their clients might be having is what helps them achieve that 29-year dividend track record of increases.
On the topic of WBA, we have a piece slated to look at how they plan to survive given the threat of Amazon and the fact the USA - for reasons we can't comprehend - lets criminals run riot in some cities and does nothing to stop them.
It's not exactly cheap now.
Quality companies rarely ever are
I like Realty Income. However, I think it is at best at a very small discount.
The P/E is 41. Its peers are at P/E of only 17. Realty Income has a P/S ratio of 9.
Quality will always come with a richer price tag
One of my favorite Onion posts: “Economists Trace Great Resignation To Comedy Central Airing ‘Office Space’ Constantly During Workers’ Formative Years.”
Here's a contender as well. Bantu Tribesman Uses IBM Global Uplink Network Modem to Crush Nut. “I could not crush the nut by myself,” said the 47-year-old Ndeti, who added the savory nut to a thick, peanut-based soup minutes later. “With IBM’s help, I was able to break it.”
I don't get the endgame with REITs. O's stock appreciated 50% in 10 years, which is a lousy return, dilutes old shareholders through constantly issuing new stock, debt is sky-high and per definition is bound to a few geographies (REITs can't move production across the pond like other businesses) which is risky. Net income / assets is very low (eg. compared to McDonalds or Rio Tinto which all "do" something with their assets). It seems that REITs are drowning in debt and must go bust once the inflow of new capital from new shareholders stops. This seems like a dangerous long-term strategy. What am I missing?
Be sure to take into account total return, not just the stock price return. When you reinvest dividends, the performance is really remarkable over time (as seen on a slide in this video). Debt is a critical component of the REIT business model, and it's a competitive advantage if conservatively managed. The same holds true for other firms. This company has managed to not only pay but increase their dividend for 104 quarters in a row. Shoddy outfits don't manage to achieve such track records. Quality companies do, McDonalds being one of them as well. Only a handful of REITs have achieved dividend champion status, and those are the ones we focus on.
@@Nanalyze thanks for clarifying, but I remain sceptical. The compound investment thesis doesn't seem practical because of transaction fees (afaik it's not like a re-investing ETF). While payouts over a long time seem attractive, it doesn't help when the REIT suddenly goes bankrupt. There doesn't seem to be a good set of warning signs because all REITs have high debts, so I probably wouldn't know that a REIT is about to default until it's too late.
Good! You should always approach all investments with a great degree of skepticism. No broker should be charging you transaction fees for DRIPs. As for a REIT suddenly going bankrupt, that's far less likely to happen when a REIT spends a great deal of effort on making sure their renters don't go bankrupt as covered in this piece. Credit ratings agencies are the canary in the coal mine here. Our canary would be when they break the 104-quarter track record because annual might fall next.
Vici>
Let's keep the topic of these comments on O please.
@@Nanalyze looking at competitors and similar stocks is important
@@cameronvincent Yes, looking at competitors is relevant. So what triple net lease competitor did you want to talk about? There's a slide in the video which lists them out.
@@Nanalyzepretty sure Vici is net lease too and what about O investing 1b in the bellagio don’t see how Vici is off topic
@@cameronvincent We've seen your name around so we know you're a regular. ;) We appreciate that. So, please understand what we're trying to do here which is to keep the comments section on topic. You raised a real estate investment trust specializing in casino properties that was formed in 2017 as a spin-off from Caesars Entertainment Corporation as part of its bankruptcy reorganization. The total exposure of Realty Income to casinos is < 3%. It's true that casinos are typically impervious to macroeconomic headwinds, but that's a different conversation to have. 🎰🎲♠
BTW loved Office Space. Should be required viewing for every HS senior. Probably be a lot less student debt
Such a great flick! It should be required viewing, you're right!