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 12/31/2009 and collect their dividends have received (as of 9/30/2020):

10.8% yield on cost (vs. an original yield of 6.6%) | 64% increase in the amount of dividend income
134% increase in the value of shares | 93% 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
9/30/20
Original Annual Dividend Income Current Annual Dividend Income (1) Original Yield Current Yield on Cost at
9/30/20
Dividends Received through
9/30/20
% of Original Investment
Paid Back in Dividends
10-18-94 $8,000 $60,750
$900 $2,808
11.3% 35.1% $42,921 537%
12-31-94 $8,563 $60,750
$900 $2,808
10.5% 32.8% $42,621 498%
12-31-95 $11,250 $60,750
$930 $2,808
8.3% 25.0% $41,708 371%
12-31-96 $11,938 $60,750
$945 $2,808
7.9% 23.5% $40,662 341%
12-31-97 $12,719 $60,750
$960 $2,808
7.5% 22.1% $39,716 312%
12-31-98 $12,438 $60,750
$1,020 $2,808
8.2% 22.6% $38,733 311%
12-31-99 $10,313 $60,750
$1,080 $2,808
10.5% 27.2% $37,691 365%
12-31-00 $12,438 $60,750
$1,110 $2,808
8.9% 22.6% $36,600 294%
12-31-01 $14,700 $60,750
$1,140 $2,808
7.8% 19.1% $35,478 241%
12-31-02 $17,500 $60,750
$1,170 $2,808
6.7% 16.0% $34,327 196%
12-31-03 $20,000 $60,750
$1,200 $2,808
6.0% 14.0% $33,146 166%
12-31-04 $25,290 $60,750
$1,320 $2,808
5.2% 11.1% $31,905 126%
12-31-05 $21,620 $60,750
$1,395 $2,808
6.5% 13.0% $30,558 141%
12-31-06 $27,700 $60,750
$1,518 $2,808
5.5% 10.1% $29,121 105%
12-31-07 $27,020 $60,750
$1,641 $2,808
6.1% 10.4% $27,561 102%
12-31-08 $23,150 $60,750
$1,701 $2,808
7.3% 12.1% $25,899 112%
12-31-09 $25,910 $60,750
$1,716 $2,808
6.6% 10.8% $24,192 93%
12-31-10 $34,200 $60,750
$1,731 $2,808
5.1% 8.2% $22,470 66%
12-31-11 $34,960 $60,750
$1,746 $2,808
5.0% 8.0% $20,734 59%
12-31-12 $40,210 $60,750
$1,821 $2,808
4.5% 7.0% $18,962 47%
12-31-13 $37,330 $60,750
$2,186 $2,808
5.9% 7.5% $16,815 45%
12-31-14 $47,710 $60,750
$2,201 $2,808
4.6% 5.9% $14,623 31%
12-31-15 $51,630 $60,750
$2,292 $2,808
4.4% 5.4% $12,352 24%
12-31-16 $57,480 $60,750
$2,430 $2,808
4.2% 4.9% $9,960 17%
12-31-17 $57,020 $60,750
$2,550 $2,808
4.5% 4.9% $7,433 13% 
12-31-18 $63,040
$60,750
$2,652 $2,808
4.2% 4.5% $4,803 8%
12-31-19$73,630$60,750
$2,730$2,808
3.7%3.8%$2,0923%
9-30-20$60,750$60,750 $2,808$2,8084.6%4.6%  

(1) Current annual dividend income based on annualized dividend per share of $2.808

$73,560
$73,560

Investors who have elected to reinvest their dividends have enjoyed the following returns over time
(as of 9/30/2020):

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

Note: Assumes dividend reinvestment on the last day of each period.

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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.