### Realty Income: A Lucrative Opportunity for Investors

Realty Income has demonstrated an impressive capability to generate wealth for its investors over the years. This real estate investment trust (REIT) has delivered a compound annual total return of 14.3% since it was listed on the New York Stock Exchange back in 1994. An initial investment of $10,000 three decades ago has now grown to over $555,000, showcasing its potent investment potential.

A significant driver behind Realty Income’s success has been its consistent dividend payments. Since its public debut, the REIT has distributed over $14.1 billion in dividends. This robust financial performance is further evidenced by the REIT’s ability to increase its dividend payout 127 times, which includes an uninterrupted streak of increases for 108 quarters at a compound annual rate of 4.3%.

For instance, an investor who purchased 1,000 shares at the end of 2013 at a cost of $37,330 would have received approximately $30,000 in dividend income over a decade. This dividend income represents about 80% of the initial investment, with the annual income stream increasing by nearly $1,000, or 44%, within that period. Moreover, the overall value of the investment would have appreciated by 54%, primarily driven by the rising dividend payments.

The ability of Realty Income to consistently enhance its dividend payouts is rooted in expanding its portfolio of income-generating real estate. Since 2010, the REIT has invested around $47 billion in acquiring real estate, including other REITs and properties through sale-leaseback transactions. Such investments have escalated the company’s adjusted funds from operations (FFO) per share by approximately 5% annually.

Moving forward, Realty Income aims to elevate its adjusted FFO per share by 4% to 5% each year. This growth strategy is supported by three core components:

1. A vast array of investment opportunities, with a $5.4 trillion total addressable market for net lease real estate in the U.S. and an additional $8.5 trillion market in Europe.
2. An expanding portfolio that now includes data centers, gaming properties, new European markets, and credit investments.
3. An elite balance sheet endorsed by two A3/A- credit ratings or better, enabling the REIT to secure funds at lower costs.

Given these factors, Realty Income is well-positioned to continue increasing its high-yielding dividend, currently over 5%, by approximately the same annual rate. Combined, these elements suggest that the REIT could deliver total returns of around 10% annually, with the potential for even greater returns if it secures more acquisitions. Under this growth rate, an investment in Realty Income has the potential to double approximately every seven years.