Question 1

How much would I have if I DCA'd $100/week into CAH for 5 years?

Accepted Answer

Dollar cost averaging $100 per week into CAH for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $64,644, a return of 148%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $17,194 and grew to $54,579 — a 217% return.

Question 2

What is the best DCA strategy for CAH?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when CAH is overextended — outperformed standard weekly DCA by 70% over 5 years. The enhanced strategy achieved a 217% return vs 148% for standard DCA.

Question 3

What would $100/week into CAH be worth after 3 years?

Accepted Answer

Investing $100 per week into CAH for 3 years (157 purchases, $15,700 total) would have grown to $27,108 — a 73% return. Enhanced DCA over the same period returned 94%.

Question 4

Is DCA into CAH worth it?

Accepted Answer

Based on a 5-year backtest, DCA into CAH returned 148% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 217% over the same period — a 70% gain in return, while deploying a similar or smaller amount of capital.

Question 5

How many shares of CAH would I have after DCA for 5 years?

Accepted Answer

Dollar cost averaging $100/week into CAH for 5 years would result in approximately 272 shares with a standard DCA approach (avg entry $96). Enhanced DCA targeting dips results in 230 shares at an average entry of $75.

Question 6

How does CAH DCA compare to the S&P 500?

Accepted Answer

Enhanced DCA into CAH returned 217% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. CAH's performance reflects its volatility as a healthcare asset. Enhanced DCA outperformed standard DCA by 70%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into CAH?

Accepted Answer

Past backtest performance does not guarantee future results. CAH is a healthcare asset whose price can fall as well as rise. While DCA reduces timing risk by spreading purchases over time, losses are still possible if the price declines significantly. Always invest within your risk tolerance and consider your overall portfolio diversification.

Question 8

What is the Cardinal Health dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into CAH at regular intervals. Enhanced DCA improves on this by using RSI (Relative Strength Index) signals to increase buy amounts during market dips (oversold conditions) and reduce or skip purchases when the stock is overextended. Over the 5-year backtest, this timing approach has delivered 70% higher returns than standard DCA while deploying less total capital into CAH.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	12%	18%	+6%
3-Year	73%	94%	+21%
5-Year	148%	217%	+70%

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Dollar cost averaging into CAH — backtest results

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