If people have read a few of my posts they'll see I put a lot of weight in dividend reinvestment for dollar cost averaging and building additional returns each year. As such, I've always looked for a calculator that could tell me the value of a stock with dividend reinvestment. A few days ago I found one. I compared many stock's return since 3/14/1981 with dividend reinvestment. I stared by assuming a person on 3/14/1981 (as far back as the calculator will go) started with $1,000. I found some of the results very interesting. Hormel (HRL): $184,037 Apple (AAPL): $41,903 ExxonMobile (XOM): $88,263 Union Pacific (UNP): $8,729 (ouch) Becton Dickenson (BDX): $81,573 Disney (DIS): $136,059 Wells Fargo (WFC): $147,412 Johnson & Johnson: $101,167 One of the stocks I tout (Union Pacific) has been such a lame duck. Also, I've added a good deal of Hormel to my portfolio recently but after finding this tool, I'm more convinced of Hormel's merits. If you would like me to run other stocks, let me know. Warning in advance, this tool does not have Coca-Cola or Walmart.
Dollar cost averaging is a pretty good method for lots of folks. I am curious if you would adjust how much you are buying with the overall market at its current valuations, or if you would just keep putting in the same amount regardless of market valuations?? The only reason I am asking is because I do not want to get over anxious to put money into the market at this point of a seven year bull run.
