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 6/30/2018):

9.8% yield on cost (vs. an original yield of 6.1%) | 61% increase in the amount of dividend income
99% increase in the value of shares | 79% 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
6/30/18
Original Annual Dividend Income Current Annual Dividend Income (1) Original Yield Current Yield on Cost at
6/30/18
Dividends Received through
6/30/18
% of Original Investment
Paid Back in Dividends
10-18-94 $8,000 $53,790
$900 $2,640
11.3% 33.0% $36,797 460%
12-31-94 $8,563 $53,790
$900 $2,640
10.5% 30.8% $36,497 426%
12-31-95 $11,250 $53,790
$930 $2,640
8.3% 23.5% $35,584 316%
12-31-96 $11,938 $53,790
$945 $2,640
7.9% 22.1% $34,538 289%
12-31-97 $12,719 $53,790
$960 $2,640
7.5% 20.8% $33,592 264%
12-31-98 $12,438 $53,790
$1,020 $2,640
8.2% 21.2% $32,609 262%
12-31-99 $10,313 $53,790
$1,080 $2,640
10.5% 25.6% $31,567 306%
12-31-00 $12,438 $53,790
$1,110 $2,640
8.9% 21.2% $30,476 245%
12-31-01 $14,700 $53,790
$1,140 $2,640
7.8% 18.0% $29,354 200%
12-31-02 $17,500 $53,790
$1,170 $2,640
6.7% 15.1% $28,203 161%
12-31-03 $20,000 $53,790
$1,200 $2,640
6.0% 13.2% $27,022 135%
12-31-04 $25,290 $53,790
$1,320 $2,640
5.2% 10.4% $25,781 102%
12-31-05 $21,620 $53,790
$1,395 $2,640
6.5% 12.2% $24,434 113%
12-31-06 $27,700 $53,790
$1,518 $2,640
5.5% 9.5% $22,997 83%
12-31-07 $27,020 $53,790
$1,641 $2,640
6.1% 9.8% $21,437 79%
12-31-08 $23,150 $53,790
$1,701 $2,640
7.3% 11.4% $19,775 85%
12-31-09 $25,910 $53,790
$1,716 $2,640
6.6% 10.2% $18,068 70%
12-31-10 $34,200 $53,790
$1,731$2,640 
5.1% 7.7% $16,346 48%
12-31-11 $34,960 $53,790
$1,746 $2,640
5.0% 7.6% $14,610 42%
12-31-12 $40,210 $53,790
$1,821 $2,640
4.5% 6.6% $12,838 32%
12-31-13 $37,330 $53,790
$2,186 $2,640
5.9% 7.1% $10,691 29%
12-31-14 $47,710 $53,790
$2,201 $2,640
4.6% 5.5% $8,499 18%
12-31-15 $51,630 $53,790
$2,292 $2,640
4.4% 5.1% $6,228 12%
12-31-16 $57,480 $53,790
$2,430 $2,640
4.2% 4.6% $3,836 7%
12-31-17 $57,020 $53,790
$2,550 $2,640
4.5% 4.6% $1,309  2% 
 6-30-18$53,790 $53,790$2,640$2,6404.9%4.9%  

(1) Current annual dividend income based on annualized dividend per share of $2.64

Investors who have elected to reinvest their dividends have enjoyed the following returns over time
(as of 6/30/2018):

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.