Question 1

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

Accepted Answer

Dollar cost averaging $100 per week into PNW for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $31,864, a return of 22%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $31,386 and grew to $40,231 — a 28% return.

Question 2

What is the best DCA strategy for PNW?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when PNW is overextended — outperformed standard weekly DCA by 6% over 5 years. The enhanced strategy achieved a 28% return vs 22% for standard DCA.

Question 3

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

Accepted Answer

Investing $100 per week into PNW for 3 years (157 purchases, $15,700 total) would have grown to $17,929 — a 14% return. Enhanced DCA over the same period returned 17%.

Question 4

Is DCA into PNW worth it?

Accepted Answer

Based on a 5-year backtest, DCA into PNW returned 22% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 28% over the same period — a 6% gain in return, while deploying more capital.

Question 5

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

Accepted Answer

Dollar cost averaging $100/week into PNW for 5 years would result in approximately 322 shares with a standard DCA approach (avg entry $81). Enhanced DCA targeting dips results in 407 shares at an average entry of $77.

Question 6

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

Accepted Answer

Enhanced DCA into PNW returned 28% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. PNW's performance reflects its volatility as a utilities asset. Enhanced DCA outperformed standard DCA by 6%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into PNW?

Accepted Answer

Past backtest performance does not guarantee future results. PNW is a utilities 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 Pinnacle West Capital dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into PNW 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 6% higher returns than standard DCA while deploying more total capital into PNW.

PNW DCA Backtest — Dollar Cost Averaging Results

PNW DCA Results: Key Findings

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Dollar cost averaging into PNW — backtest results

Buying the dips for Pinnacle West Capital

PNW DCA backtest results: standard vs enhanced
Period	Standard DCA	Enhanced DCA	Alpha
1-Year	2%	4%	+2%
3-Year	14%	17%	+3%
5-Year	22%	28%	+6%