On February 26, 2021, I bought additional 20 shares of Realty Income Corp. (NYSE:O ) paying $60.85 per share.
With its monthly dividend of 0.23 cents per share, this latest buy has a dividend yield of 4.53% and will pay us an additional $4.60 every month (before tax). Now, that's awesome!
To finance this purchase we spent one-fourth of our options income in the month of February.
I now hold in total 84 shares of O, In total, they contribute about $197.06 (after tax) yearly to our dividend income portfolio.
Using dollar-cost averaging our average cost per one O share is $60.66
Also, O is one of the largest holdings now in our portfolio, taking 11.65% of it
If we had 100 shares of O today, we could sell March 19, 2021, covered call (monthly options) with a strike price of $62.5, to get a $0.50 premium. In case our shares would get called away on the expiry date we would realize $239 income in 19 days, that's a potential return of 3.03% since we started buying O.
It's planned to buy more O shares once a month until we will reach 100 shares. It looks like we might get there around April or May 2021.
16 shares to go!