Skip to main content
No. of Recommendations: 7
Yesterday, they announced these trades for their dividend portfolios. They sold O because of its valuation saying it is now pricey. They like SRC's valuation and dividend yield and think SRC can become another O. They see similarities in SRC's real estate portfolio to O's portfolio. They still think O is a blue chip operation.

Long O but not SRC.
Print the post Back To Top
No. of Recommendations: 19
Hi David
O and NNN are indeed poster children of those who's primary investment goal is reliable and growing income. Their cash flow trending charts are picture perfect...they just don't look much better. So I've pretty much ignored O's price and just paid attention to their quarterly CF numbers to ensure they continue as they have....the price will take care of itself.

But to sell/replace with SRC at today's valuation is an intriguing thought. Today, O's current yield is about 3.6% while SRCs is about 6.3%. But the the next question would be income risk and dividend reliability, which requires pulling down their CF history over past 10-quarters, which at first glance look ok. The other exercise is to pull down dividend history, and here it gets confusing. Looks like SRC had a 5:1 dividend split in Dec. 2018, a 1000:1115 split in June 2018 and a 1:1 split (never seen this in a REIT before) in July 2013. And it looks like there was a large capital gain distribution May 2018 with lots of unrecaptured Sec. 1250. hmmm. This looks promising, but I'm going to need time to study it.

Thanks for the info

Print the post Back To Top
No. of Recommendations: 2
And thanks, BruceM, for your initial take on SRC.

I appreciate you sharing those thoughts.

Print the post Back To Top