The first dividend stock you buy can be a very big decision. Sometimes, the best thing you can you do is to make a decision.
First Dividend Stock
We have decided to make our first stock is Realty Income Corp (O). We are starting this portfolio to build passive income, and the word income is right in the name. It is like when peanut butter met jelly and said let’s make a sandwich. It just made sense. In addition, Realty Income Corp (O) pays a monthly dividend payment. So every month, we will get a small reward for buying the stock.
We bought 4 shares of Realty Income Corp (O) for $212.60 including the $7 commission. This will give us $0.76 every month. Now I can afford to buy half a Pepsi from the vending machine every month. Bling-Bling. While I agree this is a small amount to start, the important thing is that we made a start. A journey of a thousand miles begins with a single step (Lao-tzu). Often, the hardest part is to just start. We opened a trading account, put some money in it, and bought shares in a stock that pays dividends. Just to get here takes a little bit of effort. And most of this was not hard, just some time.
Some Good Qualities
One great thing about this stock is that they have been paying a monthly dividend for 22 years. In addition, they have not missed a payment during this time. And on top of that, they have increased the dividend at least once a year for that same amount of time. This is a long time. Do you want to let someone borrow money from you that pays on time for 22 years, or someone who is late paying every single month? We want to own this stock for a long time. By buying a stock that pays for 22 years, we believe that will help increase the likelihood that they will keep on paying. While the past does not predict future results, we like the track record.
Now that we have our first dividend stock, would should set some Dividend Goals for 2016.
What do you think of Realty Income Corp (O) as our first dividend stock? Do you remember what your first dividend stock was?
Disclosure: I own shares of O