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The special nature of the Realty Income dividend allows the majority of it to be taxed as Income tax and not capital gains tax. Since this stock is marketed as an income stock and the mean age of the investor is well over fifty, many would enjoy lower tax brackets than in their prime earning years.

For those that have made the high dividend an intregal part of a ROTH strategy, using the dividends to acquire equities with a higher risk/reward ratio the lack of automatic dividend reinvestment is painful.

Most brokerages will reinvest dividends with or without a DRIP in place for free. They do this as a service to their clients. However the company (issuer of the stock) does need to file some paperwork with the transfer agent-clearing house for this to occur. Realty Income has turned a deaf ear to calls to make this possible for some shareholders.

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