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 12/31/2010 and collect their dividends have received (as of 3/31/2021):

8.2% yield on cost (vs. an original yield of 5.1%) | 63% increase in the amount of dividend income
86% increase in the value of shares | 70% 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
3/31/21
Original Annual Dividend Income Current Annual Dividend Income (1) Original Yield Current Yield on Cost at
3/31/21
Dividends Received through
3/31/21
% of Original Investment
Paid Back in Dividends
10-18-94 $8,000
$900 $2,820
11.3% 35.3% $44,326 554%
12-31-94 $8,563 $63,500
$900 $2,820
10.5% 32.9% $44,026 514%
12-31-95 $11,250 $63,500
$930 $2,820
8.3% 25.1% $43,114 383%
12-31-96 $11,938 $63,500
$945 $2,820
7.9% 23.6% $42,068 352%
12-31-97 $12,719 $63,500
$960 $2,820
7.5% 22.2% $41,121 323%
12-31-98 $12,438 $63,500
$1,020 $2,820
8.2% 22.7% $40,139 323%
12-31-99 $10,313 $63,500
$1,080 $2,820
10.5% 27.3% $39,096 379%
12-31-00 $12,438 $63,500
$1,110 $2,820
8.9% 22.7% $38,005
306%
12-31-01 $14,700 $63,500
$1,140 $2,820
7.8% 19.2% $36,884
251%
12-31-02 $17,500 $63,500
$1,170 $2,820
6.7% 16.1% $35,733
204%
12-31-03 $20,000 $63,500
$1,200 $2,820
6.0% 14.1% $34,551
173%
12-31-04 $25,290 $63,500
$1,320 $2,820
5.2% 11.2% $33,310
132%
12-31-05 $21,620 $63,500
$1,395 $2,820
6.5% 13.0% $31,964
148%
12-31-06 $27,700 $63,500
$1,518 $2,820
5.5% 10.2% $30,527
110%
12-31-07 $27,020 $63,500
$1,641 $2,820
6.1% 10.4% $28,966 107%
12-31-08 $23,150 $63,500
$1,701 $2,820
7.3% 12.2% $27,304 118%
12-31-09 $25,910 $63,500
$1,716 $2,820
6.6% 10.9% $25,597 99%
12-31-10 $34,200 $63,500
$1,731 $2,820
5.1% 8.2% $23,876 70%
12-31-11 $34,960 $63,500
$1,746 $2,820
5.0% 8.1% $22,139 63%
12-31-12 $40,210 $63,500
$1,821 $2,820
4.5% 7.0% $20,368 51%
12-31-13 $37,330 $63,500
$2,186 $2,820
5.9% 7.6% $18,220 49%
12-31-14 $47,710 $63,500
$2,201 $2,820
4.6% 5.9% $16,028 34%
12-31-15 $51,630 $63,500
$2,292 $2,820
4.4% 5.5% $13,757 27%
12-31-16 $57,480 $63,500
$2,430 $2,820
4.2% 4.9% $11,366 20%
12-31-17 $57,020 $63,500
$2,550 $2,820
4.5% 4.9% $8,839 16% 
12-31-18 $63,040
$63,500
$2,652 $2,820
4.2% 4.5% $6,208 10%
12-31-19$73,630$63,500
$2,730$2,820
3.7%3.8%$3,4985%
12-31-20$62,170$63,500
$2,814$2,820
4.5%4.5%$7041%
3-31-21$63,500$63,500$2,820$2,8204.4%4.4%  

(1) Current annual dividend income based on annualized dividend per share of $2.82

$73,560
$73,560

Investors who have elected to reinvest their dividends have enjoyed the following returns over time
(as of 3/31/2021):

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.