Most people don’t think of boring dividend stocks as potentially great trades.
And they definitely don’t think of REITs as high-growers.
But it can happen.
Take a look at Realty Income (O). This company is known as the premier monthly dividend payer.
It’s not known for growth.
And yet, here’s the chart:
Back a year ago in October 2023, O had fallen far below “fair value”. It had even fallen far below the lower band.
Was this steady REIT in trouble? Or was it a great value?
As you can see, a buy below the lower band around $47.75 would have had a “fair value” up at $63.
Plus, you would have gotten dividends all along the way.
Did it bounce back?
You can see it on the chart.
It hit “fair value” at $62 in August 2024.
That’s a 29% win with around a 5% dividend yield added on.
Even boring income stocks can go on sale.
And sometimes, they can pay off nicely.
Happy trading,
— Scott Welsh
