Sunday, November 2, 2014

Dividend Income: October & Recent Buy

We all have been shocked this week because of the American Realty Capital Corporation (ARCP) accounting mistakes. It is not something that usually happens, and it makes ARCP look like a less trustworthy company. Although I feel sad about what happened, I still bought more.

I bought 96 shares of American Realty Capital Corporation (ARCP)

This purchase increases my annual dividend income for around $92.16 

This purchase does not come without higher risk, and I did think these risk factors before my purchase. The biggest risk probably is that there is more accounting errors, and if there is ARCP will loose all that little bit of trust what they have left among the investors. But I also believe that the CEO and the Board Members have already looked through the files before making any announcements, and making sure that there isn't anything more that could surprise them, well that would be something I would do, I would make damn sure that there isn't anything else that could compromise the company, before announcing anything like that.

Also after listening the ARCP press conference (you can download it here ) ARCP CEO David S. Kay did what a CEO had to do and what he should do, he increased my confidence and comfort according to this issue. If everything bad was here the biggest blow is towards the reputation of the company. Even if it is a speculation I trust that everything bad was here and the stock itself is a bargain, and will eventually rise.

Conclusion: I do plan to hold ARCP for a long time, even if there would be a blow on the 2013 AFFO, and even if the dividend would fall 50% it would still yield a decent 5% dividend annually at the current price. But I would like to remind all of you that ARCP currently may or may not have a higher risk, so if you are planning to buy it you must make your own judgement.

Dividend Income: October

  • American Realty Capital Corporation (ARCP) $16.67
  • Realty Income Corp. (O) $8.42
  • Nike Inc (NKE) $4.56
  • Laclede Group Inc (LG) $20.68
  • The Coca-Cola Company (KO) $24.40
Total: $74.73

My monthly dividend income is starting to look an actual income instead of pennies, and I am really happy on this progress I have made. I will continue to purchase more good dividend businesses and increase my dividend income to be big enough to let me retire one day.


Any comments on my ARCP purchase are welcome.


  1. I think I would increase my position if it wouldn't be already almost 5% of my portfolio =)

  2. Thanks for sharing your recent dividend income update with us. All I have in common with you for the month is KO. I think most of the dividend investors will be keeping their ARCP. As you said, even with a dividend cut the stock will still be yielding a very nice return. Still, this isn't the type of news you want to hear when holding an investment.

  3. Yeah today we had some new news about ARCP and again not good. FBI is getting involved, and RCS end's Cole Capital deal. Should have waited with my buy, but you never know.