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 12/31/2007 and collect their dividends have received (as of 9/30/2018):

9.8% yield on cost (vs. an original yield of 6.1%) | 61% increase in the amount of dividend income
111% increase in the value of shares | 82% 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
9/30/18
Original Annual Dividend Income Current Annual Dividend Income (1) Original Yield Current Yield on Cost at
9/30/18
Dividends Received through
9/30/18
% of Original Investment
Paid Back in Dividends
10-18-94 $8,000 $56,890 $900 $2,646 11.3% 33.1% $37,457 468%
12-31-94 $8,563 $56,890 $900 $2,640 10.5% 30.9% $37,157 434%
12-31-95 $11,250 $56,890
$930 $2,640
8.3% 23.5% $36,244 322%
12-31-96 $11,938 $56,890 $945 $2,646
7.9% 22.2% $35,198 295%
12-31-97 $12,719 $56,890 $960 $2,646 7.5% 20.8% $34,252 269%
12-31-98 $12,438 $56,890 $1,020 $2,646 8.2% 21.3% $33,269 267%
12-31-99 $10,313 $56,890 $1,080 $2,646 10.5% 25.7% $32,227 313%
12-31-00 $12,438 $56,890 $1,110 $2,646 8.9% 21.3% $31,136 250%
12-31-01 $14,700 $56,890 $1,140 $2,646 7.8% 18.0% $30,014 204%
12-31-02 $17,500 $56,890 $1,170 $2,646 6.7% 15.1% $28,863 165%
12-31-03 $20,000 $56,890 $1,200 $2,646 6.0% 13.2% $27,682 138%
12-31-04 $25,290 $56,890 $1,320 $2,646 5.2% 10.5% $26,441 105%
12-31-05 $21,620 $56,890 $1,395 $2,646 6.5% 12.2% $25,094 116%
12-31-06 $27,700 $56,890 $1,518 $2,646 5.5% 9.6% $23,657 85%
12-31-07 $27,020 $56,890 $1,641 $2,646 6.1% 9.8% $22,097 82%
12-31-08 $23,150 $56,890 $1,701 $2,646 7.3% 11.4% $20,435 88%
12-31-09 $25,910 $56,890 $1,716 $2,646 6.6% 10.2% $18,728 72%
12-31-10 $34,200 $56,890 $1,731 $2,646 5.1% 7.7% $17,006 50%
12-31-11 $34,960 $56,890 $1,746 $2,646 5.0% 7.6% $15,270 44%
12-31-12 $40,210 $56,890 $1,821 $2,646 4.5% 6.6% $13,498 34%
12-31-13 $37,330 $56,890 $2,186 $2,646 5.9% 7.1% $11,351 30%
12-31-14 $47,710 $56,890 $2,201 $2,646 4.6% 5.5% $9,159 19%
12-31-15 $51,630 $56,890 $2,292 $2,646 4.4% 5.1% $6,888 13%
12-31-16 $57,480 $56,890 $2,430 $2,646 4.2% 4.6% $4,496 8%
12-31-17 $57,020 $56,890 $2,550 $2,646 4.5% 4.6% $1,969  3% 
 9-30-18$56,890$56,890$2,646$2,6464.7%4.7%  

(1) Current annual dividend income based on annualized dividend per share of $2.646

Investors who have elected to reinvest their dividends have enjoyed the following returns over time
(as of 9/30/2018):

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.