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 3/31/2018):

9.7% yield on cost (vs. an original yield of 6.1%) | 61% increase in the amount of dividend income
91% increase in the value of shares | 77% 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
3/31/18
Original Annual Dividend Income Current Annual Dividend Income (1) Original Yield Current Yield on Cost at
3/31/18
Dividends Received through
3/31/18
% of Original Investment
Paid Back in Dividends
10-18-94 $8,000 $51,730
$900 $2,634
11.3% 32.9% $36,138 452%
12-31-94 $8,563 $51,730
$900 $2,634
10.5% 30.8% $35,838 419%
12-31-95 $11,250 $51,730
$930 $2,634
8.3% 23.4% $34,926 310%
12-31-96 $11,938 $51,730
$945 $2,634
7.9% 22.1% $33,880 284%
12-31-97 $12,719 $51,730
$960 $2,634
7.5% 20.7% $32,933 259%
12-31-98 $12,438 $51,730
$1,020 $2,634
8.2% 21.2% $31,951 257%
12-31-99 $10,313 $51,730
$1,080 $2,634
10.5% 25.5% $30,908 300%
12-31-00 $12,438 $51,730
$1,110 $2,634
8.9% 21.2% $29,817 240%
12-31-01 $14,700 $51,730
$1,140 $2,634
7.8% 17.9% $28,696 195%
12-31-02 $17,500 $51,730
$1,170 $2,634
6.7% 15.1% $27,545 157%
12-31-03 $20,000 $51,730
$1,200 $2,634
6.0% 13.2% $26,363 132%
12-31-04 $25,290 $51,730
$1,320 $2,634
5.2% 10.4% $25,122 99%
12-31-05 $21,620 $51,730
$1,395 $2,634
6.5% 12.2% $23,776 110%
12-31-06 $27,700 $51,730
$1,518 $2,634
5.5% 9.5% $22,339 81%
12-31-07 $27,020 $51,730
$1,641 $2,634
6.1% 9.7% $20,778 77%
12-31-08 $23,150 $51,730
$1,701 $2,634
7.3% 11.4% $19,116 83%
12-31-09 $25,910 $51,730
$1,716 $2,634
6.6% 10.2% $17,409 67%
12-31-10 $34,200 $51,730
$1,731$2,634 
5.1% 7.7% $15,688 46%
12-31-11 $34,960 $51,730
$1,746 $2,634
5.0% 7.5% $13,951 40%
12-31-12 $40,210 $51,730
$1,821 $2,634
4.5% 6.6% $12,180 30%
12-31-13 $37,330 $51,730
$2,186 $2,634
5.9% 7.1% $10,032 27%
12-31-14 $47,710 $51,730
$2,201 $2,634
4.6% 5.5% $7,840 16%
12-31-15 $51,630 $51,730
$2,292 $2,634
4.4% 5.1% $5,569 11%
12-31-16 $57,480 $51,730
$2,430 $2,634
4.2% 4.6% $3,178 6%
12-31-17 $57,020 $51,730
$2,550 $2,634
4.5% 4.6% $651  1% 
 3-31-18$51,730 $51,730$2,634$2,6345.1%5.1%  

(1) Current annual dividend income based on annualized dividend per share of $2.634

Investors who have elected to reinvest their dividends have enjoyed the following returns over time
(as of 12/31/2017):

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.