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 12/31/2017):

9.4% yield on cost (vs. an original yield of 6.1%) | 55% increase in the amount of dividend income
111% increase in the value of shares | 74% 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
12/31/17
Original Annual Dividend Income Current Annual Dividend Income (1) Original Yield Current Yield on Cost at
12/31/17
Dividends Received through
12/31/17
% of Original Investment
Paid Back in Dividends
10-18-94 $8,000 $57,020
$900 $2,550
11.3% 31.9% $35,488 444%
12-31-94 $8,563 $57,020
$900 $2,550
10.5% 29.8% $35,188 411%
12-31-95 $11,250 $57,020
$930 $2,550
8.3% 22.7% $34,275 305%
12-31-96 $11,938 $57,020
$945 $2,550
7.9% 21.4% $33,229 278%
12-31-97 $12,719 $57,020
$960 $2,550
7.5% 20.0% $32,283 254%
12-31-98 $12,438 $57,020
$1,020 $2,550
8.2% 20.5% $31,300 252%
12-31-99 $10,313 $57,020
$1,080 $2,550
10.5% 24.7% $30,258 293%
12-31-00 $12,438 $57,020
$1,110 $2,550
8.9% 20.5% $29,167 235%
12-31-01 $14,700 $57,020
$1,140 $2,550
7.8% 17.3% $28,045 191%
12-31-02 $17,500 $57,020
$1,170 $2,550
6.7% 14.6% $26,894 154%
12-31-03 $20,000 $57,020
$1,200 $2,550
6.0% 12.8% $25,713 129%
12-31-04 $25,290 $57,020
$1,320 $2,550
5.2% 10.1% $24,472 97%
12-31-05 $21,620 $57,020
$1,395 $2,550
6.5% 11.8% $23,125 107%
12-31-06 $27,700 $57,020
$1,518 $2,550
5.5% 9.2% $21,688 78%
12-31-07 $27,020 $57,020
$1,641 $2,550
6.1% 9.4% $20,128 74%
12-31-08 $23,150 $57,020
$1,701 $2,550
7.3% 11.0% $18,466 80%
12-31-09 $25,910 $57,020
$1,716 $2,550
6.6% 9.8% $16,759 65%
12-31-10 $34,200 $57,020
$1,731$2,550 
5.1% 7.5% $15,037 44%
12-31-11 $34,960 $57,020
$1,746 $2,550
5.0% 7.3% $13,301 38%
12-31-12 $40,210 $57,020
$1,821 $2,550
4.5% 6.3% $11,529 29%
12-31-13 $37,330 $57,020
$2,186 $2,550
5.9% 6.8% $9,382 25%
12-31-14 $47,710 $57,020
$2,201 $2,550
4.6% 5.3% $7,190 15%
12-31-15 $51,630 $57,020
$2,292 $2,550
4.4% 4.9% $4,919 10%
12-31-16 $57,480 $57,020
$2,430 $2,550
4.2% 4.4% $2,527 4%
12-31-17 $57,020 $57,020 $2,550 $2,550 4.5% 4.5%    

(1) Current annual dividend income based on annualized dividend per share of $2.55

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.