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 9/30/2019):

11.8% yield on cost (vs. an original yield of 7.3%) | 60% increase in the amount of dividend income
231% increase in the value of shares | 100% 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
9/30/19
Original Annual Dividend Income Current Annual Dividend Income (1) Original Yield Current Yield on Cost at
9/30/19
Dividends Received through
9/30/19
% of Original Investment
Paid Back in Dividends
10-18-94 $8,000 $76,680
$900 $2,724
11.3% 34.1% $40,148 502%
12-31-94 $8,563 $76,680
$900 $2,724
10.5% 31.8% $39,848 465%
12-31-95 $11,250 $76,680
$930 $2,724
8.3% 24.2% $38,935 346%
12-31-96 $11,938 $76,680
$945 $2,724
7.9% 22.8% $37,889 317%
12-31-97 $12,719 $76,680
$960 $2,724
7.5% 21.4% $36,943 290%
12-31-98 $12,438 $76,680
$1,020 $2,724
8.2% 21.9% $35,960 289%
12-31-99 $10,313 $76,680
$1,080 $2,724
10.5% 26.4% $34,918 339%
12-31-00 $12,438 $76,680
$1,110 $2,724
8.9% 21.9% $33,827 272%
12-31-01 $14,700 $76,680
$1,140 $2,724
7.8% 18.5% $32,705 222%
12-31-02 $17,500 $76,680
$1,170 $2,724
6.7% 15.6% $31,554 180%
12-31-03 $20,000 $76,680
$1,200 $2,724
6.0% 13.6% $30,373 152%
12-31-04 $25,290 $76,680
$1,320 $2,724
5.2% 10.8% $29,132 115%
12-31-05 $21,620 $76,680
$1,395 $2,724
6.5% 12.6% $27,785 129%
12-31-06 $27,700 $76,680
$1,518 $2,724
5.5% 9.8% $26,348 95%
12-31-07 $27,020 $76,680
$1,641 $2,724
6.1% 10.1% $24,788 92%
12-31-08 $23,150 $76,680
$1,701 $2,724
7.3% 11.8% $23,126 100%
12-31-09 $25,910 $76,680
$1,716 $2,724
6.6% 10.5% $21,419 83%
12-31-10 $34,200 $76,680
$1,731 $2,724
5.1% 8.0% $19,697 58%
12-31-11 $34,960 $76,680
$1,746 $2,724
5.0% 7.8% $17,961 51%
12-31-12 $40,210 $76,680
$1,821 $2,724
4.5% 6.8% $16,189 40%
12-31-13 $37,330 $76,680
$2,186 $2,724
5.9% 7.3% $14,042 38%
12-31-14 $47,710 $76,680
$2,201 $2,724
4.6% 5.7% $11,850 25%
12-31-15 $51,630 $76,680
$2,292 $2,724
4.4% 5.3% $9,579 19%
12-31-16 $57,480 $76,680
$2,430 $2,724
4.2% 4.7% $7,187 13%
12-31-17 $57,020 $76,680
$2,550 $2,724
4.5% 4.8% $4,660 8% 
12-31-18 $63,040
$76,680
$2,652 $2,724
4.2% 4.3% $2,030 3%
9-30-19$76,680$76,680
$2,724$2,724
3.6%3.6%  

(1) Current annual dividend income based on annualized dividend per share of $2.724

$73,560
$73,560

Investors who have elected to reinvest their dividends have enjoyed the following returns over time
(as of 9/30/2019):

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.