Realty Income: New York Stock Exchange Symbol 'O'

The longer one holds their shares, the higher the yield received on one's original investment and the cumulative dividend effect may kick in.

The "Magic" of Rising Dividends

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.

Here is the "Magic"

Increased income = increased return potential over time from:

  1. Increased yield on cost potential
  2. Enhance investment return potential

Example: Investors who purchased Realty Income shares 10 years ago and collects their dividends have received (as of 12/31/14)

  • 8.7% yield on cost
  • 89% increase in the value
  • 67% increase in the amount of dividend income
  • 68% of your original investment been paid back as dividend income
Increased income equals increased investment return potential over time

(For more details see the table below)

Realty Income Shareholder Yield On Cost Click to enlarge
Realty Income Shareholder Yield On Cost

Investors who have elected to reinvest their dividends have enjoyed the following returns
over time (as of 12/31/14)

Realty Income Dividends Reinvested Over Time Click to enlarge
Realty Income Dividends Reinvested Over Time Enlarged

Realty Income Yield on Cost Calculator

"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.

Original Share
Purchase Price:

Annual Dividend:

Calculate Yield on Cost Clear calculator

Current Yield on Cost=
(Realty Income)

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.

Find out how we generate dividends.
Investing Risks
One of the risks unique to Realty Income dividends is the fact that dividends are supported by lease revenue.