Monthly Dividends from an S&P 500 REIT
There are potential benefits to investing long-term in a real estate investment trust (REIT) that regularly increases its monthly dividend. The longer you hold your shares, the higher the yield you will receive on your original investment, assuming dividends increase over time.
As an example: Investors who purchased Realty Income shares on 12/31/2005
and collect their dividends have received (as of 12/31/2016):
11% yield on cost (vs. an original yield of 6.5%) | 74% increase in the amount of dividend income
166% increase in the value of share | 95% of the original investment paid back as dividend 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.