The Magic of Rising Dividends

There are potential benefits to 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, assuming dividends increase over time. Additionally, the compounding of reinvested dividends could generate increased investment returns over time.

As an example: Investors who purchased Realty Income shares on 12/31/2008 and collect their dividends have received (as of 6/30/2019):

11.7% yield on cost (vs. an original yield of 7.3%) | 60% increase in the amount of dividend income
198% increase in the value of shares | 97% of the original investment paid back as dividend income

The Magic of Rising Dividends Over Time The Cumulative Dividend Effect
1K Shares Purchased on Original Investment Investment Value as of
6/30/19
Original Annual Dividend Income Current Annual Dividend Income (1) Original Yield Current Yield on Cost at
6/30/19
Dividends Received through
6/30/19
% of Original Investment
Paid Back in Dividends
10-18-94 $8,000 $68,970
$900 $2,718
11.3% 34.0% $39,468 493%
12-31-94 $8,563 $68,970
$900 $2,718
10.5% 31.7% $39,168 457%
12-31-95 $11,250 $68,970
$930 $2,718
8.3% 24.2% $38,256 340%
12-31-96 $11,938 $68,970
$945 $2,718
7.9% 22.8% $37,210 312%
12-31-97 $12,719 $68,970
$960 $2,718
7.5% 21.4% $36,263 285%
12-31-98 $12,438 $68,970
$1,020 $2,718
8.2% 21.9% $35,281 284%
12-31-99 $10,313 $68,970
$1,080 $2,718
10.5% 26.4% $34,238 332%
12-31-00 $12,438 $68,970
$1,110 $2,718
8.9% 21.9% $33,147 267%
12-31-01 $14,700 $68,970
$1,140 $2,718
7.8% 18.5% $32,026 218%
12-31-02 $17,500 $68,970
$1,170 $2,718
6.7% 15.5% $30,875 176%
12-31-03 $20,000 $68,970
$1,200 $2,718
6.0% 13.6% $29,693 148%
12-31-04 $25,290 $68,970
$1,320 $2,718
5.2% 10.7% $28,452 113%
12-31-05 $21,620 $68,970
$1,395 $2,718
6.5% 12.6% $27,106 125%
12-31-06 $27,700 $68,970
$1,518 $2,718
5.5% 9.8% $25,669 93%
12-31-07 $27,020 $68,970
$1,641 $2,718
6.1% 10.1% $24,108 89%
12-31-08 $23,150 $68,970
$1,701 $2,718
7.3% 11.7% $22,446 97%
12-31-09 $25,910 $68,970
$1,716 $2,718
6.6% 10.5% $20,739 80%
12-31-10 $34,200 $68,970
$1,731 $2,718
5.1% 7.9% $19,018 56%
12-31-11 $34,960 $68,970
$1,746 $2,718
5.0% 7.8% $17,281 49%
12-31-12 $40,210 $68,970
$1,821 $2,718
4.5% 6.8% $15,510 39%
12-31-13 $37,330 $68,970
$2,186 $2,718
5.9% 7.3% $13,362 36%
12-31-14 $47,710 $68,970
$2,201 $2,718
4.6% 5.7% $11,170 23%
12-31-15 $51,630 $68,970
$2,292 $2,718
4.4% 5.3% $8,899 17%
12-31-16 $57,480 $68,970
$2,430 $2,718
4.2% 4.7% $6,508 11%
12-31-17 $57,020 $68,970
$2,550 $2,718
4.5% 4.8% $3,981 7% 
12-31-18 $63,040
$68,970
$2,652 $2,718
4.2% 4.3% $1,350 2%
6-30-19$68,970$68,970
$2,718$2,7183.9%3.9%  

(1) Current annual dividend income based on annualized dividend per share of $2.718

$73,560
$73,560

Investors who have elected to reinvest their dividends have enjoyed the following returns over time
(as of 3/31/201):

Comparison of $100 Invested in Realty Income in 1994 vs. Major Stock Indices

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LEGAL DISCLAIMER:
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.