Here's What Your Monthly Dividend Income Would Be Today If You Invested $10,000 In Realty Income 10 Years Ago

Kevin Vandenboss
3 min read
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Here's What Your Monthly Dividend Income Would Be Today If You Invested $10,000 In Realty Income 10 Years Ago
Here's What Your Monthly Dividend Income Would Be Today If You Invested $10,000 In Realty Income 10 Years Ago

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Realty Income Corp. (NYSE:O), known as “The Monthly Dividend Company,” has been a reliable source of consistent dividend income for investors over the years. As a real estate investment trust (REIT) and a member of the elite group of Dividend Aristocrats, Realty Income has an impressive track record of paying monthly dividends and increasing them over time.

But just how much dividend income could you be earning today if you had invested $10,000 in Realty Income stock a decade ago? Let’s dive into the numbers.

If you had invested $10,000 in Realty Income on April 29, 2014, when the stock price was $42.05 per share (adjusted for the 1032:1000 stock split in November 2021), you would have been able to purchase approximately 237.81 shares. At that time, the monthly dividend per share was $0.1825, which means your initial monthly dividend income would have been $43.40.

Fast forward to April 26, 2024, and your investment would look quite different depending on whether you chose to reinvest your dividends or not.

Scenario 1: Reinvesting Dividends

If you had reinvested all your dividends over the past 10 years, your total return would be an impressive 100.87%. Your initial 237.81 shares would have grown to 373.98 shares, thanks to the power of compound interest and dividend reinvestment.

With Realty Income’s current monthly dividend of $0.2570 per share, your monthly dividend income would now be a staggering $96.11. That’s more than double what you started with 10 years ago.

Scenario 2: Not Reinvesting Dividends

If you had chosen not to reinvest your dividends and instead collected them as cash, your total return over the past 10 years would still be a respectable 89.78%. However, your number of shares would have remained constant at 237.81.

Based on the current monthly dividend of $0.2570 per share, your monthly dividend income would be $63.07. While this is a significant increase from the initial $43.40, it’s considerably less than what you could have earned by reinvesting your dividends.

The Power of Dividend Reinvestment

These scenarios clearly demonstrate the power of dividend reinvestment and compound interest. By reinvesting your dividends, you can purchase additional shares of stock without having to invest any extra cash. Over time, this can lead to a substantial increase in your total return and dividend income, as evidenced by the Realty Income example.

Diversify Your Monthly Income Stream With Fractional Real Estate

While Realty Income is undoubtedly a solid choice for investors seeking consistent monthly dividend income, it’s important to remember that publicly traded stocks are subject to market volatility. For those looking to diversify their income streams and potentially reduce exposure to market fluctuations, real estate investing through platforms like Arrived is worth considering.

Arrived allows individuals to invest in shares of rental properties for as little as $100, providing the potential for monthly rental income and long-term appreciation without the hassles of being a landlord. With over $1 million in dividends paid out last quarter and a growing selection of properties across various markets, Arrived offers an attractive alternative for investors seeking to build a diversified real estate portfolio.

Click here to view properties available on Arrived.

In conclusion, if you had invested $10,000 in Realty Income 10 years ago and reinvested your dividends, you would be earning an impressive $96.11 in monthly dividend income today. This example showcases the potential of dividend investing and the importance of considering monthly dividend stocks like Realty Income for your portfolio.

However, savvy investors should always explore multiple avenues for generating passive income. Platforms like Arrived provide a unique opportunity to invest in real estate and potentially earn monthly rental income without the volatility of the stock market.

This article Here's What Your Monthly Dividend Income Would Be Today If You Invested $10,000 In Realty Income 10 Years Ago originally appeared on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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