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 12/31/2018):

11.5% yield on cost (vs. an original yield of 7.3%) | 56% increase in the amount of dividend income
172% increase in the value of shares | 91% 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
12/31/18
Original Annual Dividend Income Current Annual Dividend Income (1) Original Yield Current Yield on Cost at
12/31/18
Dividends Received through
12/31/18
% of Original Investment
Paid Back in Dividends
10-18-94 $8,000 $63,040 $900 $2,652
11.3% 33.2% $38,118 476%
12-31-94 $8,563 $63,040
$900 $2,652
10.5% 31.0% $37,818 442%
12-31-95 $11,250 $63,040
$930 $2,652
8.3% 23.6% $36,906 328%
12-31-96 $11,938 $63,040
$945 $2,652
7.9% 22.2% $35,860 300%
12-31-97 $12,719 $63,040
$960 $2,652
7.5% 20.9% $34,913 275%
12-31-98 $12,438 $63,040
$1,020 $2,652
8.2% 21.3% $33,931 273%
12-31-99 $10,313 $63,040
$1,080 $2,652
10.5% 25.7% $32,888 319%
12-31-00 $12,438 $63,040
$1,110 $2,652
8.9% 21.3% $31,797 256%
12-31-01 $14,700 $63,040
$1,140 $2,652
7.8% 18.0% $30,676 209%
12-31-02 $17,500 $63,040
$1,170 $2,652
6.7% 15.2% $29,525 169%
12-31-03 $20,000 $63,040
$1,200 $2,652
6.0% 13.3% $28,343 142%
12-31-04 $25,290 $63,040
$1,320 $2,652
5.2% 10.5% $27,102 107%
12-31-05 $21,620 $63,040
$1,395 $2,652
6.5% 12.3% $25,756 119%
12-31-06 $27,700 $63,040
$1,518 $2,652
5.5% 9.6% $24,319 88%
12-31-07 $27,020 $63,040
$1,641 $2,652
6.1% 9.8% $22,758 84%
12-31-08 $23,150 $63,040
$1,701 $2,652
7.3% 11.5% $21,096 91%
12-31-09 $25,910 $63,040
$1,716 $2,652
6.6% 10.2% $19,389 75%
12-31-10 $34,200 $63,040
$1,731 $2,652
5.1% 7.8% $17,668 52%
12-31-11 $34,960 $63,040
$1,746 $2,652
5.0% 7.6% $15,931 46%
12-31-12 $40,210 $63,040
$1,821 $2,652
4.5% 6.6% $14,160 35%
12-31-13 $37,330 $63,040
$2,186 $2,652
5.9% 7.1% $12,012 32%
12-31-14 $47,710 $63,040
$2,201 $2,652
4.6% 5.6% $9,820 21%
12-31-15 $51,630 $63,040
$2,292 $2,652
4.4% 5.1% $7,549 15%
12-31-16 $57,480 $63,040
$2,430 $2,652
4.2% 4.6% $5,158 9%
12-31-17 $57,020 $63,040
$2,550 $2,652
4.5% 4.7% $2,631 5% 
12-31-18 $63,040
$63,040
$2,652 $2,652 4.2% 4.2%    

(1) Current annual dividend income based on annualized dividend per share of $2.652

Investors who have elected to reinvest their dividends have enjoyed the following returns over time
(as of 12/31/2018):

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.