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Real estate income company. (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 how much dividend income could you earn today if you had invested $10,000 in Realty Income stock ten years ago? Let’s move on to 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 could have purchased approximately 237.81 shares. At that time, the monthly dividend per share was $0.1825, meaning your initial monthly dividend income would have been $43.40.
Fast forward to April 26, 2024, and your investment would look very different depending on whether or not you chose to reinvest your dividends.
Scenario 1: Reinvest dividends
If you had reinvested all your dividends over the past 10 years, your total return would be an impressive 100.87%. Your original 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 amount to 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 collect them in 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 is considerably less than 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 without having to invest additional money. Over time, this can result in a substantial increase in your total return and dividend income, as evidenced by the real estate income example.
Diversify your monthly income stream with fractional real estate
While Realty Income is undoubtedly a solid choice for investors looking for consistent monthly dividend income, it is important to remember that publicly traded stocks are subject to market volatility. For those looking to diversify their sources of income and potentially reduce their exposure to market fluctuations, real estate investing through platforms such as Arrived Worth to be considered.
Arrived allows individuals to invest in rental property shares 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 last quarter and a growing selection of properties in various markets, Arrived offers an attractive alternative for investors looking to build a diversified real estate portfolio.
Click here to view available properties on Arrivé.
In conclusion, if you had invested $10,000 in real estate income 10 years ago and reinvested your dividends, you would earn an impressive monthly dividend income of $96.11 today. This example shows 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 offer a unique opportunity to invest in real estate and potentially earn monthly rental income without the volatility of the stock market.
This item Here’s what your monthly dividend income would be today if you invested $10,000 in real estate income 10 years ago originally appeared on Benzinga.com
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