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 12/31/2006 and collect their dividends have received (as of 9/30/2017):

9.2% yield on cost (vs. an original yield of 5.5%) | 68% increase in the amount of dividend income
106% increase in the value of shares | 76% 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
9/30/17
Original Annual Dividend Income Current Annual Dividend Income (1) Original Yield Current Yield on Cost at
9/30/17
Dividends Received through
9/30/17
% of Original Investment
Paid Back in Dividends
10-18-94 $8,000 $57,190
$900 $2,544
11.3% 31.8% $34,852 436%
12-31-94 $8,563 $57,190
$900 $2,544
10.5% 29.7% $34,552 404%
12-31-95 $11,250 $57,190
$930 $2,544
8.3% 22.6% $33,639 299%
12-31-96 $11,938 $57,190
$945 $2,544
7.9% 21.3% $32,593 273%
12-31-97 $12,719 $57,190
$960 $2,544
7.5% 20.0% $31,647 249%
12-31-98 $12,438 $57,190
$1,020 $2,544
8.2% 20.5% $30,664 247%
12-31-99 $10,313 $57,190
$1,080 $2,544
10.5% 24.7% $29,622 287%
12-31-00 $12,438 $57,190
$1,110 $2,544
8.9% 20.5% $28,531 229%
12-31-01 $14,700 $57,190
$1,140 $2,544
7.8% 17.3% $27,409 186%
12-31-02 $17,500 $57,190
$1,170 $2,544
6.7% 14.5% $26,258 150%
12-31-03 $20,000 $57,190
$1,200 $2,544
6.0% 12.7% $25,077 125%
12-31-04 $25,290 $57,190
$1,320 $2,544
5.2% 10.1% $23,836 94%
12-31-05 $21,620 $57,190
$1,395 $2,544
6.5% 11.8% $22,489 104%
12-31-06 $27,700 $57,190
$1,518 $2,544
5.5% 9.2% $21,052 76%
12-31-07 $27,020 $57,190
$1,641 $2,544
6.1% 9.4% $19,492 72%
12-31-08 $23,150 $57,190
$1,701 $2,544
7.3% 11.0% $17,830 77%
12-31-09 $25,910 $57,190
$1,716 $2,544
6.6% 9.8% $16,123 62%
12-31-10 $34,200 $57,190
$1,731$2,544 
5.1% 7.4% $14,401 42%
12-31-11 $34,960 $57,190
$1,746 $2,544
5.0% 7.3% $12,665 36%
12-31-12 $40,210 $57,190
$1,821 $2,544
4.5% 6.3% $10,893 27%
12-31-13 $37,330 $57,190
$2,186 $2,544
5.9% 6.8% $8,746 23%
12-31-14 $47,710 $57,190
$2,201 $2,544
4.6% 5.3% $6,554 14%
12-31-15 $51,630 $57,190
$2,292 $2,544
4.4% 4.9% $4,283 8%
12-31-16 $57,480 $57,190
$2,430 $2,544
4.2% 4.4% $1,891 3%
 9-30-17 $57,190 $57,190  $2,544 $2,544  4.4% 4.4%     

(1) Current annual dividend income based on annualized dividend per share of $2.544

Investors who have elected to reinvest their dividends have enjoyed the following returns over time
(as of 9/30/2017):

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.