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 6/30/2021):

8.3% yield on cost (vs. an original yield of 5.1%) | 63% increase in the amount of dividend income
95% increase in the value of shares | 72% 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
6/30/21
Original Annual Dividend Income Current Annual Dividend Income (1) Original Yield Current Yield on Cost at
6/30/21
Dividends Received through
6/30/21
% of Original Investment
Paid Back in Dividends
10-18-94 $8,000 $66,740
$900 $2,826
11.3% 35.3% $45,031 563%
12-31-94 $8,563 $66,740
$900 $2,826
10.5% 33.0% $44,731 522%
12-31-95 $11,250 $66,740
$930 $2,826
8.3% 25.1% $43,819 390%
12-31-96 $11,938 $66,740
$945 $2,826
7.9% 23.7% $42,773 358%
12-31-97 $12,719 $66,740
$960 $2,826
7.5% 22.2% $41,826 329%
12-31-98 $12,438 $66,740
$1,020 $2,826
8.2% 22.7% $40,844 328%
12-31-99 $10,313 $66,740
$1,080 $2,826
10.5% 27.4% $39,801 386%
12-31-00 $12,438 $66,740
$1,110 $2,826
8.9% 22.7% $38,710
311%
12-31-01 $14,700 $66,740
$1,140 $2,826
7.8% 19.2% $37,589
256%
12-31-02 $17,500 $66,740
$1,170 $2,826
6.7% 16.1% $36,438
208%
12-31-03 $20,000 $66,740
$1,200 $2,826
6.0% 14.1% $35,256
176%
12-31-04 $25,290 $66,740
$1,320 $2,826
5.2% 11.2% $34,015
134%
12-31-05 $21,620 $66,740
$1,395 $2,826
6.5% 13.1% $32,669
151%
12-31-06 $27,700 $66,740
$1,518 $2,826
5.5% 10.2% $31,232
113%
12-31-07 $27,020 $66,740
$1,641 $2,826
6.1% 10.5% $29,671 110%
12-31-08 $23,150 $66,740
$1,701 $2,826
7.3% 12.2% $28,009 121%
12-31-09 $25,910 $66,740
$1,716 $2,826
6.6% 10.9% $26,302 102%
12-31-10 $34,200 $66,740
$1,731 $2,826
5.1% 8.3% $24,581 72%
12-31-11 $34,960 $66,740
$1,746 $2,826
5.0% 8.1% $22,844 65%
12-31-12 $40,210 $66,740
$1,821 $2,826
4.5% 7.0% $21,073 52%
12-31-13 $37,330 $66,740
$2,186 $2,826
5.9% 7.6% $18,925 51%
12-31-14 $47,710 $66,740
$2,201 $2,826
4.6% 5.9% $16,733 35%
12-31-15 $51,630 $66,740
$2,292 $2,826
4.4% 5.5% $14,462 28%
12-31-16 $57,480 $66,740
$2,430 $2,826
4.2% 4.9% $12,071 21%
12-31-17 $57,020 $66,740
$2,550 $2,826
4.5% 5.0% $9,544 17% 
12-31-18 $63,040
$66,740
$2,652 $2,826
4.2% 4.5% $6,913 11%
12-31-19 $73,630 $66,740
$2,730 $2,826
3.7% 3.8% $4,203 6%
12-31-20 $62,170 $66,740
$2,814 $2,826
4.5% 4.5% $1,409 2%
6-30-21 $66,740 $66,740 $2,826 $2,826 4.2% 4.2%    

(1) Current annual dividend income based on annualized dividend per share of $2.826

$73,560
$73,560

Investors who have elected to reinvest their dividends have enjoyed the following returns over time
(as of 6/30/2021):

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.