There are potential benefits from investing long-term in a company that regularly increases its dividend. The longer you hold your shares, the higher the yield you will receive on your original investment and the potential for increased investment returns over time.
Increased income = increased return potential over time from:
Example: Investors who purchased Realty Income shares 10 years ago and collects their dividends have received (as of 12/31/14)
(For more details see the table below)
Investors who have elected to reinvest their dividends have enjoyed the following returns
over time (as of 12/31/14)
"Yield on Cost" illustrates the benefits of holding shares of a company that pays increasing dividends. The formula is simple—take the current dividend and divide it by the original price per share of your investment. Determine your current yield on cost with this simple calculator.
Current Yield on Cost=
Past performance is not a reliable indicator of future performance. There is risk that dividends will not always increase, that dividends will not be declared according to past history, or that dividends will be declared at all.