Question 1

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

Accepted Answer

Dollar cost averaging $100 per week into O for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $23,520, a return of -10%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $37,310 and grew to $34,673 — a -7% return.

Question 2

What is the best DCA strategy for O?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when O is overextended — outperformed standard weekly DCA by 3% over 5 years. The enhanced strategy achieved a -7% return vs -10% for standard DCA.

Question 3

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

Accepted Answer

Investing $100 per week into O for 3 years (157 purchases, $15,700 total) would have grown to $14,794 — a -6% return. Enhanced DCA over the same period returned -2%.

Question 4

Is DCA into O worth it?

Accepted Answer

Based on a 5-year backtest, DCA into O returned -10% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned -7% over the same period — a 3% gain in return, while deploying more capital.

Question 5

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

Accepted Answer

Dollar cost averaging $100/week into O for 5 years would result in approximately 434 shares with a standard DCA approach (avg entry $60). Enhanced DCA targeting dips results in 640 shares at an average entry of $58.

Question 6

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

Accepted Answer

Enhanced DCA into O returned -7% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. O's performance reflects its volatility as a real estate asset. Enhanced DCA outperformed standard DCA by 3%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into O?

Accepted Answer

Past backtest performance does not guarantee future results. O is a real estate 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 Realty Income dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into O 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 3% higher returns than standard DCA while deploying more total capital into O.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	-11%	-8%	+3%
3-Year	-6%	-2%	+3%
5-Year	-10%	-7%	+3%

O DCA Backtest — Dollar Cost Averaging Results

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Dollar cost averaging into O — backtest results

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