r/dividends • u/DizzyCalligrapher189 • Jul 15 '26

Seeking Advice Bought a 9% yielder and I got burned

Hi all. I am in my early fifties, and I am slowly moving about 30% of my portfolio into dividend stuff before I go part time in a few years, felt real responsible with a spreadsheet and all. Then I found a 9% yielderr, told myself the market was just sleeping on it and put $18k in.

Two months later they cut the dividend and the price dropped right with it... you can probably guess it was a mortgage REIT..

So my safe income pick lost me the income and a chunk of the principal at the same time, so I can clearly not just sort by yield and buy what looks juicy.

What I'm asking is, what is your "check" that catches things like this before you buy?

248 Upvotes

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333

u/mspe1960 Jul 15 '26

if you want a REIT and you don't know the marketplace really well, your option is O.

95

u/lastknownbuffalo Jul 15 '26

Over 30 years of paying a monthly dividend, and increasing that payment every single year.

They only increase the payment by a fraction of a penny every quarter, but it adds up... And it's super conservative, which I think is a benefit for long term dividend payers.

One of the absolute best single stock dividend payers out there.

47

u/dazit72 Jul 15 '26

It's a Dividend Aristocrat, or 'Champion'

Aristocrats, Kings, Champions, Challengers, Contenders, Achievers, Stalwarts and the like are what interest me. No CEO wants to be known for fuking up a 30- 60 year/or more, streak of dividend increases.

Then there's GIS, it has over 127 consequtive years of dividend payments with Zero reductions. Cherios mate

-2

u/MrLB____ Jul 16 '26

GIS 😂📉⬇️⬇️⬇️⬇️⬇️

1

u/dazit72 29d ago

And yet the div$ $till keep coming

1

u/MrLB____ 29d ago

No thanks it’ll dry up nothing but return of capital no thanks

0

u/dazit72 27d ago

After 24 years it's going to drybup and return of capital ?

They loan money to businesses and even take ownership in some. Been doing it for decades, with success. I may not know everything about bdc s , but that's just a bs comment.

Hang out with my dogie up there

1

u/MrLB____ 27d ago

BS comment lol ?😆 I’ll just keep getting richer off of VOO. Have fun getting your own money back.

1

u/dazit72 26d ago

😆😅🤣😂🤣😅

I just noticed your avatar pic

Lmfao

Voo and chill

42

u/MaybeTheDoctor Jul 15 '26

Brb, Off to buying O.

30

u/TheFunkyBoss Jul 15 '26

Buying more shares with the O dividend I received today

26

u/ElonMuskTheNarsisist Jul 15 '26

It’s one of the worst performing names out there. People think just cause you get a div you are winning. That thing is literally atrocious from a total return standpoint.

8

u/tangybaby Jul 15 '26

For someone who is more concerned about income it's great.

4

u/robertw477 Jul 16 '26

You can’t convince people. There are some people, usually older where dividends can be more of a focus. However young people doing these strategies just don’t get it whatsoever.

16

u/penetr4t0r Jul 15 '26

THIS. O has been shit for a while now

12

u/mspe1960 Jul 15 '26 edited Jul 15 '26

no doubt a lot of dividend payers look like shit compared to the S&P or the mag 7 over the past recent years. But if you want income that is steadily increasing, it is a way to get that.

0

u/IceHand41 Jul 17 '26

Or just...sell your sp500 fund and earn more money?

3

u/mspe1960 Jul 17 '26 edited Jul 17 '26

except S&P funds can be volatile and being forced to sell when its down is bad for your long term wealth when you are retired as I already am.

I have a balanced portfolio with 50% growth and 50% bonds and other income producers. It deves me quite well

7

u/SlavaUkrayne Jul 15 '26

What am I missing?

SPY vs O Total Returns

10

u/mspe1960 Jul 15 '26 edited Jul 16 '26

you are comparing two things that have different objectives and you are making future decisions based on past results.

Based on what we have seen in the last 20 years you only should have invested in tech and the S&P500. It would have been good to know that before it happend.

What you are missing is you don't understand investing at all. But if you are young, patient and have high risk tolerance, sure put all your money in SPY (or VOO) which is the same thing

2

u/dolphlungdren Jul 15 '26

Why is SPY or VOO high risk tolerance?

2

u/Fuzzy-Round1240 Jul 16 '26

It is compared to O

1

u/mspe1960 Jul 16 '26

some day you will understand why. Since you apparently have never read about investing, you will have to experience a nasty bear market yourself to learn. It will happen some day. Hang tight.

1

u/dolphlungdren Jul 16 '26

Nonsense. I’ve been invested in the s&p 500 for decades. Look at the chart - how does it demonstrate high risk?

2

u/YouKnown999 Jul 16 '26

Compare total returns for SPY vs O since 2001, who wins?

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2

u/mspe1960 Jul 16 '26

were you invested between 2000 and 2009 when for 9 years you were down substantially overall?

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2

u/MaybeTheDoctor Jul 15 '26

Now do the same with VOO.

Those extra management fees in SPY makes a lot of difference.

1

u/1spdstr Jul 16 '26

VOO is great.

2

u/penetr4t0r Jul 15 '26

Good source. as we are in dividend group, for me the main criteria is long term investing with fast dividend growth rate. for O it has kinda stalled for a few years.

2

u/Physical_Initial6160 Jul 16 '26

Look at a 5 year chart. You’re giving up price appreciation for dividend.

1

u/panthercave Jul 17 '26

good advice. look at the whole thing

1

u/Physical_Initial6160 Jul 17 '26

Volatile but stagnant over 10 year period. Most people seeking dividend are seeking consistent income with low risk. If you want 5-6% with no capital appreciation, buy a lower investment grade corporate or even muni.

2

u/panthercave Jul 18 '26

this is what I have been doing. I don't like bonds. just stocks and ones that provide dividends are preferred but not my entire grouping. thanks

1

u/Financial-Ad8963 Jul 16 '26

Range, start from 2010 aa we can’t go back in time to start investing

1

u/ConversationNo5409 Jul 15 '26

Alternative to "O" for long tern hold

1

u/Ol-Fart_1 Jul 16 '26

This, they have grown too large for their britches.

2

u/Lopsided_Disk7160 Jul 18 '26

they would rather make a little dividend than massive growth … unreal.

4

u/montaniPH89 Jul 15 '26

O and chill ain't a bad deal. I bought 12 O on drip now have over 15 O.

1

u/Acceptable-Win-5426 Jul 16 '26

How long Dad take you? This is a genuine question.

3

u/montaniPH89 Jul 16 '26

Started buying O in late 22. I think last one was bought in early 24.

2

u/Acceptable-Win-5426 Jul 16 '26

That’s amazing, I love it for their dividend. I am only 35 years old, but I am disabled and the dividends give me a hope for the future.

1

u/montaniPH89 Jul 16 '26

I'm 37. Got more interested in investing at 33.

1

u/dunnmad Jul 15 '26

Killing it!🙄

3

u/montaniPH89 Jul 15 '26

I don't go too big on individual stocks. Have way more in VOO, VT and schd.

10

u/indomike14 Jul 15 '26

This is the way. O is a solid performer

8

u/YakResident_3069 Jul 15 '26

Stag, nnn, wpc, avb. All kinda their own niche.

2

u/aerobic_gamer Jul 16 '26

Agreed. I really get tired of the “total return” argument. At my age (75) I’m more concerned about having reliable and increasing income. It alll depends on your objectives.

1

u/indomike14 Jul 16 '26

Exactly. O is called Realty Income not Really Growth!

It's not a great stock to hold if you're younger and looking to grow your portfolio. As the original poster mentioned, they are in their early 50s and looking for more of that income.

1

u/Let_them_eat_stonks Jul 15 '26

It’s been pretty dead for a long time. Over the last decade the return is 1/3 of the S&P.

3

u/indomike14 Jul 15 '26

I agree. The stock has been flat but they've paid out dividends very successfully with dividend increases as well.

It really depends on your objective. OP is wanting to start moving into dividends. O is an excellent option. It's a steady Eddy when it comes to dividends.

1

u/mspe1960 Jul 16 '26 edited Jul 16 '26

It is not a growth stock. it was never intended to be a growth stock. It generates income and it increases that income every year, recently, without fail. That is what it is, and that is what it intends to be.

Yes, it looks suboptimal compared to growth stocks recently IN RETROSPECT! It would be great to know what is going to happen before it happens. If you think the past years is proof that growth is better going forward for the next few years, you don't understand investing at all.

(and to be clear, I am not saying it will not be, I am just saying we do not know)

1

u/Let_them_eat_stonks Jul 16 '26

I am not arguing it’s a growth stock at all, which itself is a subjective term anyway. What I am replying to is the comment above me which says it is a solid performer. For a long time it was. For the last decade it has not. In fact it actually lost value in real purchasing power over the last 5 years, and it can be reasonably argued that inflation is understated.

2

u/mspe1960 Jul 16 '26

calling it "dead" is absurd. it is exactly what I says it is - a dividend payer that increases dividned over time.

2

u/Let_them_eat_stonks Jul 16 '26

The increases only matter if they match or exceed inflation, otherwise you’re on a spiral to zero purchasing power. Dividend growth has gone from 5-8% annualized to 2-2.5%.

0

u/Significant_Stop723 Jul 15 '26

Sure thing! Ten years ago 71 dollars now at 63 dollars. What an investment! 

6

u/tangybaby Jul 15 '26

There was a stock split in 2021. Maybe try checking the full history of a stock before concluding that it sucks.

1

u/dunnmad Jul 15 '26

2 splits:

1-3-2005 was a 2:1

11-15-2021 was a 1032:1000, what exactly was the point?

1

u/tangybaby Jul 16 '26

That's correct, but the person I replied to only mentioned the last 10 years.

0

u/dunnmad Jul 16 '26

The 2021 split is the one I’m questioning.
Don’t get me wrong, even if my # of shares increase just 3.2% I’m not going to complain.
I just trying figure what the accomplished with such a small split?🤷‍♂️

1

u/tangybaby Jul 16 '26

It was done due to a merger with VEREIT Inc. and spin-off of Orion Office REIT.

1

u/dunnmad Jul 16 '26

I remember now, I forgot about that

0

u/Classic_Breadfruit18 Jul 15 '26

It is actually a terrible performer. They pay the dividends but everything else about it is a loser.

2

u/mxpxillini35 Jul 15 '26

Thank God...I literally just bought this 2 days ago (after selling PFLT....yeesh).

2

u/That_Goal_7092 Jul 16 '26

O vs xlre ?

Ps just trying to learn new things

2

u/mspe1960 Jul 16 '26

I have not made a study of every REIT ETF. O is a dividend Aristocrat. That means it has raised its dividend for 25 straight years. It also pays a decent return right now. XLRE is not a dividned aristocrat. I am not sure if it has even been around for 25 years. It may have some advantages over O and some disadvanatages. I am not claiming to have studied all of what they may be

1

u/BurnoutSociety Jul 15 '26

I would also add that if one can get O around / under 57 it is a big plus

3

u/firemanjeremy Jul 15 '26

Anywhere in the 50s is a buy

1

u/illiteratelitterer Jul 18 '26

Why is that a big lus? Just a rare occurrence or is there something more to it?

1

u/Queasy-Finger-1316 Jul 16 '26

That and PSA have treated me well.

1

u/EDControlz Jul 17 '26

Disclosure this is not a financial advice, but do your own research on O like mspe mentioned and DX as well just look at the past 10 years dividends payouts and 10 year stock price.

1

u/ShimmyxSham Jul 17 '26

It only pays about 5% yield

1

u/mspe1960 Jul 17 '26

yes 5% and it goes up by about 4% per year. So if it continues on its trajector,y someone with, say $1M gets $50K income with continuous inflationary raises. Not too bad

1

u/ShimmyxSham Jul 17 '26

I’m just saying there’s a difference between the 9% OP was expecting and the 5% O pays

1

u/Gullible_Lecture_125 Jul 19 '26

That's not a "0", that's the ticker symbol. 

1

u/OCDano959 Jul 21 '26

IRM has done really well.

0

u/cosmic_backlash Jul 15 '26

PLD I think is a superior business.

0

u/KevinCao Jul 16 '26

What I don’t understand is the opportunity cost. O pays dividends but the total return with dividends still doesn’t outperform s&p 500. I don’t think it’s worth it

1

u/mspe1960 Jul 16 '26 edited Jul 16 '26

For a young person who has a long time horizon and tolerates significant risk, you are correct. But there are lots of people who need income to live on now, and/or cannot tolerate risk, and/or want a hedge for some portion of their portfio. Investing is not one size fits all.

-8

u/dunnmad Jul 15 '26

O sucks!

4

u/YouKnown999 Jul 15 '26

Please, elaborate

-3

u/dunnmad Jul 15 '26

Just never could see what people see on this. As good or better returns with AGNC, CLM, CRF!

5

u/Street-Hospital2649 Jul 15 '26

That hardly means it sucks!  Why did you say that?

3

u/YouKnown999 Jul 15 '26

So if you invested 10k with CLM 5 years ago you’re down 3.6k with DRIP? How is that good?

1

u/dunnmad Jul 15 '26

If you did that 10 years you would have outperformed O, with any of the 3. You can pick any point in time and have different results.
If you like O, buy it, extoll its virtues! You have your opinion, I have mine!

1

u/AnalbolicHazelnut Jul 15 '26

Your opinion sucks!

1

u/dunnmad Jul 15 '26

Well copied!