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 12/31/2009 and collect their dividends have received (as of 12/31/2019):

10.5% yield on cost (vs. an original yield of 6.6%) | 59% increase in the amount of dividend income
184% increase in the value of shares | 85% 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
12/31/19
Original Annual Dividend Income Current Annual Dividend Income (1) Original Yield Current Yield on Cost at
12/31/19
Dividends Received through
12/31/19
% of Original Investment
Paid Back in Dividends
10-18-94 $8,000 $73,630
$900 $2,730
11.3% 34.1% $40,829 510%
12-31-94 $8,563 $73,630
$900 $2,730
10.5% 31.9% $40,529 473%
12-31-95 $11,250 $73,630
$930 $2,730
8.3% 24.3% $39,616 352%
12-31-96 $11,938 $73,630
$945 $2,730
7.9% 22.9% $38,570 323%
12-31-97 $12,719 $73,630
$960 $2,730
7.5% 21.5% $37,624 296%
12-31-98 $12,438 $73,630
$1,020 $2,730
8.2% 21.9% $36,641 295%
12-31-99 $10,313 $73,630
$1,080 $2,730
10.5% 26.5% $35,599 345%
12-31-00 $12,438 $73,630
$1,110 $2,730
8.9% 21.9% $34,508 277%
12-31-01 $14,700 $73,630
$1,140 $2,730
7.8% 18.6% $33,386 227%
12-31-02 $17,500 $73,630
$1,170 $2,730
6.7% 15.6% $32,235 184%
12-31-03 $20,000 $73,630
$1,200 $2,730
6.0% 13.7% $31,054 155%
12-31-04 $25,290 $73,630
$1,320 $2,730
5.2% 10.8% $29,813 118%
12-31-05 $21,620 $73,630
$1,395 $2,730
6.5% 12.6% $28,466 132%
12-31-06 $27,700 $73,630
$1,518 $2,730
5.5% 9.9% $27,029 98%
12-31-07 $27,020 $73,630
$1,641 $2,730
6.1% 10.1% $25,469 94%
12-31-08 $23,150 $73,630
$1,701 $2,730
7.3% 11.8% $23,807 103%
12-31-09 $25,910 $73,630
$1,716 $2,730
6.6% 10.5% $22,100 85%
12-31-10 $34,200 $73,630
$1,731 $2,730
5.1% 8.0% $20,378 60%
12-31-11 $34,960 $73,630
$1,746 $2,730
5.0% 7.8% $18,642 53%
12-31-12 $40,210 $73,630
$1,821 $2,730
4.5% 6.8% $16,870 42%
12-31-13 $37,330 $73,630
$2,186 $2,730
5.9% 7.3% $14,723 39%
12-31-14 $47,710 $73,630
$2,201 $2,730
4.6% 5.7% $12,531 26%
12-31-15 $51,630 $73,630
$2,292 $2,730
4.4% 5.3% $10,260 20%
12-31-16 $57,480 $73,630
$2,430 $2,730
4.2% 4.7% $7,868 14%
12-31-17 $57,020 $73,630
$2,550 $2,730
4.5% 4.8% $5,341 9% 
12-31-18 $63,040
$73,630
$2,652 $2,730
4.2% 4.3% $2,711 4%
12-31-19$73,630$73,630
$2,730$2,730
3.7%3.7%  

(1) Current annual dividend income based on annualized dividend per share of $2.73

$73,560
$73,560

Investors who have elected to reinvest their dividends have enjoyed the following returns over time
(as of 12/31/2019):

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.