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 3/31/2017):

9.1% yield on cost (vs. an original yield of 5.5%) | 67% increase in the amount of dividend income
115% increase in the value of shares | 71% 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
3/31/17
Original Annual Dividend Income Current Annual Dividend Income (1) Original Yield Current Yield on Cost at
3/31/17
Dividends Received through
3/31/17
% of Original Investment
Paid Back in Dividends
10-18-94 $8,000 $59,530
$900 $2,532
11.3% 31.7% $33,584 420%
12-31-94 $8,563 $59,530
$900 $2,532 10.5% 29.6% $33,284 389%
12-31-95 $11,250 $59,530
$930 $2,532 8.3% 22.5% $32,372 288%
12-31-96 $11,938$59,530 $945 $2,532
7.9% 21.2% $31,326 262%
12-31-97 $12,719 $59,530
$960 $2,532
7.5% 19.9% $30,379 239%
12-31-98 $12,438 $59,530
$1,020 $2,532
8.2% 20.4% $29,397 236%
12-31-99 $10,313 $59,530
$1,080 $2,532
10.5% 24.6% $28,354 275%
12-31-00 $12,438 $59,530
$1,110 $2,532
8.9% 20.4% $27,263 219%
12-31-01 $14,700 $59,530
$1,140 $2,532
7.8% 17.2% $26,142 178%
12-31-02 $17,500 $59,530
$1,170 $2,532
6.7% 14.5% $24,991 143%
12-31-03 $20,000 $59,530
$1,200 $2,532
6.0% 12.7% $23,809 119%
12-31-04 $25,290 $59,530
$1,320 $2,532
5.2% 10.0% $22,568 89%
12-31-05 $21,620 $59,530
$1,395 $2,532
6.5% 11.7% $21,222 98%
12-31-06 $27,700 $59,530
$1,518 $2,532
5.5% 9.1% $19,785 71%
12-31-07 $27,020 $59,530
$1,641 $2,532
6.1% 9.4% $18,224 67%
12-31-08 $23,150 $59,530
$1,701 $2,532
7.3% 10.9% $16,562 72%
12-31-09 $25,910 $59,530
$1,716 $2,532
6.6% 9.8% $14,855 57%
12-31-10 $34,200 $59,530
$1,731 $2,532
5.1% 7.4% $13,134 38%
12-31-11 $34,960 $59,530
$1,746 $2,532
5.0% 7.2% $11,397 33%
12-31-12 $40,210 $59,530
$1,821 $2,532
4.5% 6.3% $9,626 24%
12-31-13 $37,330 $59,530
$2,186 $2,532
5.9% 6.8% $7,478 20%
12-31-14 $47,710$59,530 $2,201$2,532 4.6% 5.3% $5,286 11%
12-31-15 $51,630 $59,530
$2,292$2,532 4.4% 4.9% $3,015 6%
12-31-16 $57,480 $59,530
$2,430 $2,532
4.2% 4.4% $624 1%
 3-31-17$59,530$59,530 $2,532 $2,532 4.3%4.3%   

(1) Current annual dividend income based on annualized dividend per share of $2.532

Investors who have elected to reinvest their dividends have enjoyed the following returns over time
(as of 3/31/2017):

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.