100 Challenge Investing

Wrapping up a short 2021 for my £100/mo challenge

The conclusion of 2021 for the £100/mo challenge.

2021 has already left us with a weakened global economy and plenty of other things to worry about. My £100/mo challenge got off to a strong start, however. At the end of the year, we finished in the green (only just) with a dividend earning of £0.59. As of writing this blog post, this combined with an unrealized gain of £1.44 equates to a profit of £2.03.

Portfolio performance

As you can see from the data presented above, the portfolio has performed well through the last remaining troublesome months of 2021. It was an odd year for the stock markets with some companies (Realty Income included!) seeing millions drop off the side of the cliff.

A total of £299.01 was invested (£300.59 is our limit made up of deposits across three months and £0.59 in dividends). The current value of the portfolio is £300.45 and we’re on track to bring in just north of £10 in dividends per year.

This is how the compounding effect really takes place. The more we consistently invest (remember it’s just £25 per week!), the more dividends we make, which are then reinvested into the same stock, further increasing the number of shares we own. Rinse and repeat.

Realty Income outlook for 2022

Realty Income (O) is a real estate giant and dividend income company pie that plenty of investors love to have their fingers in. The company outlook for 2022 is strong, especially given the current push from the public and governments to “keep calm and carry on” amidst the pandemic.

The company has a diverse portfolio of real estate in multiple markets, including exposure within the UK. The best part, however, is the monthly dividend, which has compounded and grown by an average of 4.5% since 1994 when it was listed on the NYSE.

This makes Realty Income perfect for such a challenge. More than 11,000 properties are in the portfolio with 650 clients on record. Things are only going to improve as time progresses. Realty Income continues to invest heavily in Europe and I expect the share price and dividend to continue growing through 2022.

Join the challenge!

Looking to save a little each month? Set aside £100 of your wage by investing just £25 into a single stock or index fund on a regular basis and enjoy the effect of compounded returns. I’ve written guides on how to invest, released by investment tracker for free, and you can certainly follow with such a safe stock such as Realty Income.

By Rich Edmonds

Rich creates content for the top Windows-focused publication, but by night he tries to make his money work for him and rambles far too much here.

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