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 12/31/2006 and collect their dividends have received (as of 6/30/2017):

9.2% yield on cost (vs. an original yield of 5.5%) | 67% increase in the amount of dividend income
99% increase in the value of shares | 74% 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
6/30/17
Original Annual Dividend Income Current Annual Dividend Income (1) Original Yield Current Yield on Cost at
6/30/17
Dividends Received through
6/30/17
% of Original Investment
Paid Back in Dividends
10-18-94 $8,000 $55,180
$900 $2,538
11.3% 31.7% $34,217 428%
12-31-94 $8,563 $55,180
$900 $2,538 10.5% 29.6% $33,917 396%
12-31-95 $11,250 $55,180
$930 $2,538 8.3% 22.6% $33,005 293%
12-31-96 $11,938 $55,180 $945 $2,538
7.9% 21.3% $31,959 268%
12-31-97 $12,719 $55,180
$960 $2,538
7.5% 20.0% $31,012 244%
12-31-98 $12,438 $55,180
$1,020 $2,538
8.2% 20.4% $30,030 241%
12-31-99 $10,313 $55,180
$1,080 $2,538
10.5% 24.6% $28,987 281%
12-31-00 $12,438 $55,180
$1,110 $2,538
8.9% 20.4% $27,896 224%
12-31-01 $14,700 $55,180
$1,140 $2,538
7.8% 17.3% $26,775 182%
12-31-02 $17,500 $55,180
$1,170 $2,538
6.7% 14.5% $25,624 146%
12-31-03 $20,000 $55,180
$1,200 $2,538
6.0% 12.7% $24,442 122%
12-31-04 $25,290 $55,180
$1,320 $2,538
5.2% 10.0% $23,201 92%
12-31-05 $21,620 $55,180
$1,395 $2,538
6.5% 11.7% $21,855 101%
12-31-06 $27,700 $55,180
$1,518 $2,538
5.5% 9.2% $20,418 74%
12-31-07 $27,020 $55,180
$1,641 $2,538
6.1% 9.4% $18,857 70%
12-31-08 $23,150 $55,180
$1,701 $2,538
7.3% 11.0% $17,195 74%
12-31-09 $25,910 $55,180
$1,716 $2,538
6.6% 9.8% $15,488 60%
12-31-10 $34,200 $55,180
$1,731 $2,538
5.1% 7.4% $13,767 40%
12-31-11 $34,960 $55,180
$1,746 $2,538
5.0% 7.3% $12,030 34%
12-31-12 $40,210 $55,180
$1,821 $2,538
4.5% 6.3% $10,259 26%
12-31-13 $37,330 $55,180
$2,186 $2,538
5.9% 6.8% $8,111 22%
12-31-14 $47,710 $55,180 $2,201 $2,538 4.6% 5.3% $5,919 12%
12-31-15 $51,630 $55,180
$2,292 $2,538 4.4% 4.9% $3,648 7%
12-31-16 $57,480 $55,180
$2,430 $2,538
4.2% 4.4% $1,257 2%
 6-30-17 $55,180 $55,180  $2,538  $2,538  4.6% 4.6%     

(1) Current annual dividend income based on annualized dividend per share of $2.538

Investors who have elected to reinvest their dividends have enjoyed the following returns over time
(as of 6/30/2017):

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.