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 12/31/2009 and collect their dividends have received (as of 3/31/2020):

10.8% yield on cost (vs. an original yield of 6.6%) | 63% increase in the amount of dividend income
92% increase in the value of shares | 88% 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
3/31/20
Original Annual Dividend Income Current Annual Dividend Income (1) Original Yield Current Yield on Cost at
3/31/20
Dividends Received through
3/31/20
% of Original Investment
Paid Back in Dividends
10-18-94 $8,000 $49,860
$900 $2,796
11.3% 35.0% $41,521 519%
12-31-94 $8,563 $49,860
$900 $2,796
10.5% 32.7% $41,221 481%
12-31-95 $11,250 $49,860
$930 $2,796
8.3% 24.9% $40,309 358%
12-31-96 $11,938 $49,860
$945 $2,796
7.9% 23.4% $39,263 329%
12-31-97 $12,719 $49,860
$960 $2,796
7.5% 22.0% $38,316 301%
12-31-98 $12,438 $49,860
$1,020 $2,796
8.2% 22.5% $37,334 300%
12-31-99 $10,313 $49,860
$1,080 $2,796
10.5% 27.1% $36,291 352%
12-31-00 $12,438 $49,860
$1,110 $2,796
8.9% 22.5% $35,200 283%
12-31-01 $14,700 $49,860
$1,140 $2,796
7.8% 19.0% $34,079 232%
12-31-02 $17,500 $49,860
$1,170 $2,796
6.7% 16.0% $32,928 188%
12-31-03 $20,000 $49,860
$1,200 $2,796
6.0% 14.0% $31,746 159%
12-31-04 $25,290 $49,860
$1,320 $2,796
5.2% 11.1% $30,505 121%
12-31-05 $21,620 $49,860
$1,395 $2,796
6.5% 12.9% $29,159 135%
12-31-06 $27,700 $49,860
$1,518 $2,796
5.5% 10.1% $27,722 100%
12-31-07 $27,020 $49,860
$1,641 $2,796
6.1% 10.3% $26,161 97%
12-31-08 $23,150 $49,860
$1,701 $2,796
7.3% 12.1% $24,499 106%
12-31-09 $25,910 $49,860
$1,716 $2,796
6.6% 10.8% $22,792 88%
12-31-10 $34,200 $49,860
$1,731 $2,796
5.1% 8.2% $21,071 62%
12-31-11 $34,960 $49,860
$1,746 $2,796
5.0% 8.0% $19,334 55%
12-31-12 $40,210 $49,860
$1,821 $2,796
4.5% 7.0% $17,563 44%
12-31-13 $37,330 $49,860
$2,186 $2,796
5.9% 7.5% $15,415 41%
12-31-14 $47,710 $49,860
$2,201 $2,796
4.6% 5.9% $13,223 28%
12-31-15 $51,630 $49,860
$2,292 $2,796
4.4% 5.4% $10,952 21%
12-31-16 $57,480 $49,860
$2,430 $2,796
4.2% 4.9% $8,561 15%
12-31-17 $57,020 $49,860
$2,550 $2,796
4.5% 4.9% $6,034 11% 
12-31-18 $63,040
$49,860
$2,652 $2,796
4.2% 4.4% $3,403 5%
12-31-19$73,630$49,860
$2,730$2,796
3.7%3.8%$6931%
3-31-20$49,860$49,860 $2,796$2,7965.6%5.6%  

(1) Current annual dividend income based on annualized dividend per share of $2.796

$73,560
$73,560

Investors who have elected to reinvest their dividends have enjoyed the following returns over time
(as of 3/31/2020):

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.