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 12/31/2020):

8.2% yield on cost (vs. an original yield of 5.1%) | 63% increase in the amount of dividend income
82% increase in the value of shares | 68% 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
12/31/20
Original Annual Dividend Income Current Annual Dividend Income (1) Original Yield Current Yield on Cost at
12/31/20
Dividends Received through
12/31/20
% of Original Investment
Paid Back in Dividends
10-18-94 $8,000 $62,170
$900 $2,814
11.3% 35.2% $43,623 545%
12-31-94 $8,563 $62,170
$900 $2,814
10.5% 32.9% $43,323 506%
12-31-95 $11,250 $62,170
$930 $2,814
8.3% 25.0% $42,410 377%
12-31-96 $11,938 $62,170
$945 $2,814
7.9% 23.6% $41,364 347%
12-31-97 $12,719 $62,170
$960 $2,814
7.5% 22.1% $40,418 318%
12-31-98 $12,438 $62,170
$1,020 $2,814
8.2% 22.6% $39,435 317%
12-31-99 $10,313 $62,170
$1,080 $2,814
10.5% 27.3% $38,393 372%
12-31-00 $12,438 $62,170
$1,110 $2,814
8.9% 22.6% $37,302 300%
12-31-01 $14,700 $62,170
$1,140 $2,814
7.8% 19.1% $36,180 246%
12-31-02 $17,500 $62,170
$1,170 $2,814
6.7% 16.1% $35,029 200%
12-31-03 $20,000 $62,170
$1,200 $2,814
6.0% 14.1% $33,848 169%
12-31-04 $25,290 $62,170
$1,320 $2,814
5.2% 11.1% $32,607 129%
12-31-05 $21,620 $62,170
$1,395 $2,814
6.5% 13.0% $31,260 145%
12-31-06 $27,700 $62,170
$1,518 $2,814
5.5% 10.2% $29,823 108%
12-31-07 $27,020 $62,170
$1,641 $2,814
6.1% 10.4% $28,263 105%
12-31-08 $23,150 $62,170
$1,701 $2,814
7.3% 12.2% $26,601 115%
12-31-09 $25,910 $62,170
$1,716 $2,814
6.6% 10.9% $24,894 96%
12-31-10 $34,200 $62,170
$1,731 $2,814
5.1% 8.2% $23,172 68%
12-31-11 $34,960 $62,170
$1,746 $2,814
5.0% 8.0% $21,436 61%
12-31-12 $40,210 $62,170
$1,821 $2,814
4.5% 7.0% $19,664 49%
12-31-13 $37,330 $62,170
$2,186 $2,814
5.9% 7.5% $17,517 47%
12-31-14 $47,710 $62,170
$2,201 $2,814
4.6% 5.9% $15,325 32%
12-31-15 $51,630 $62,170
$2,292 $2,814
4.4% 5.5% $13,054 25%
12-31-16 $57,480 $62,170
$2,430 $2,814
4.2% 4.9% $10,662 19%
12-31-17 $57,020 $62,170
$2,550 $2,814
4.5% 4.9% $8,135 14% 
12-31-18 $63,040
$62,170
$2,652 $2,814
4.2% 4.5% $5,505 9%
12-31-19$73,630$62,170
$2,730$2,814
3.7%3.8%$2,7944%
12-31-20$62,170$62,170$2,814$2,814
4.5%4.5%  

(1) Current annual dividend income based on annualized dividend per share of $2.814

$73,560
$73,560

Investors who have elected to reinvest their dividends have enjoyed the following returns over time
(as of 12/31/2020):

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.