Presented By: The Early Bird from MarketBeat

Official Affiliate Partner: The Early Bird from MarketBeat

Hello again, investor!

Have you ever heard someone on social media say, "If this company is so great, why is the CEO (or any company executive) selling stock? Why would you buy this stock when the insiders won't!?"

Yesterday, I received this email from Realty Income, and there's a pretty quick and fun lesson here. It's as entertaining as a lesson about an SEC document can be, I suppose!

It's a new SEC filing for "Statement of Changes in Beneficial Ownership."

When we follow the email and open up the "Statement of Changes in Beneficial Ownership" PDF, we see it's for a Form 4-

This filing shows that Jonathan Pong, Realty Income's (O) EVP, CFO, & Treasurer, had 3,448 shares of common stock disposed of (Code 'F') at $53.41 per share on January 1, 2025.

Looking at the "Explanation of Responses" section, this wasn't a typical stock sale. Instead, these shares were "automatically withheld upon the vesting of 5,954 restricted shares of common stock" for tax purposes.

This is very common, and here's why:

When executives get company stock that they've earned by staying with the company, they must pay taxes on it. Instead of making them write a big check, the company usually sells some of their shares to cover the tax bill - like how your employer takes taxes out of your paycheck before you get it.

So, in this case:

5,954 shares of restricted stock vested for Mr. Pong
3,448 shares were automatically withheld/sold to cover taxes
He retained the remaining 2,506 shares

This is just paperwork showing the company handling their executives' taxes - nothing to worry about as a regular shareholder. The executive isn't choosing to sell these shares because they're worried about the company. It's how companies routinely deal with taxes when executives receive their stock.

After this transaction, you can see he still owns 39,202 shares directly (Box 5), showing he still has skin in the game with the company.

When you spot an executive stock sale, here's your quick cheat sheet on what it might be:

Tax Withholding: Like we saw today - just the company handling the executive's tax bill
Scheduled Sales: Pre-planned sales set up months in advance (called 10b5-1 plans)
Regular Payday: Many execs get a chunk of their salary in stock and sell some regularly
Life Happens Sales: As I always say, people sell stock for millions of reasons—to pay for college, a wedding, diversify their investments (nobody wants all their eggs in one basket!), or even a 2021 VW Atlas! (Still loving mine, by the way)

But, when they buy, it's usually for one reason: they think the stock is headed up.

Quick question: What's the most interesting reason you've ever sold a stock? Hit reply - I love hearing your stories and promise to read every one!

😁THANK YOU to all who responded to the last newsletter!!

Check out the portfolios and podcasts, or see what’s cooking on YouTube.

And now, here is this week's portfolio activity...

Dividends Received This Week ~$21.20

Nike (NKE) | $21.20

Dividends Received Year to Date~

$21.20

Stocks Sold (AVERAGE)

2 Tradr 2X Short TSLA Daily ETF (TSLQ) | $25.45

Stocks Bought (AVERAGE)

1 VICI Properties (VICI) | $28.88
6 Nike (NKE) | $74.15
1 Vanguard Total Stock Market ETF (VTI) | $292.25

Notable Ex-Dividends This Week + SSD Score

1/6 JPMorgan Chase (JPM), 2.06% | 70S
1/7 Bank of Nova Scotia (BNS), 5.65% | 70S
1/8 Comcast (CMCSA), 3.29% | 89VS
1/8 Main Street Capital (MAIN), 5.01% | 62S
1/10 General Mills (GIS), 3.76% | 90VS
1/10 Toronto-Dominion Bank (TD), 5.56% | 70S
1/10 Verizon (VZ), 6.73% | 70S
1/10 Mastercard (MA), 0.58% | 99VS

🎙️Podcast of the week🎙️

Butterbeer, Broadband, and t...

Jan 3 · Barron's Streetwise

28:45

Jack Hough on the Barron's Streetwise podcast had a fun chat about a media and entertainment giant and why the ticker symbol for Comcast (CMCSA) has five letters and what the "A" stands for.

🎦If you missed it, every stock we bought and sold in 2024, plus the #1 buy list stock!

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🎶Random music from the Dapper Dividends Jukebox🎶

Los Difuntos - Shining