Not exact matches
Dollar cost averaging simply means systematically and
consistently investing in increments over time.
More often than not, a passive investment strategy involves the process of
dollar cost averaging —
consistently investing the same
dollar amount on a set schedule.
Dollar -
cost averaging is when you invest
consistently, or
average, into the market, rather than be vulnerable to the market conditions at the time at which you invest a large lump sum.
Looking at my charts, an earnings yield 100E10 / P of 6 % defines when the upside from stocks has
consistently overcome the downside risk (when compared to
dollar cost averaging into a 100 % TIPS portfolio).
Like most other forms of
dollar -
cost averaging, dividend reinvestment is about the long haul, and building your portfolio
consistently over time.
As for the strategy, value
averaging has been shown to
consistently provide better returns than
dollar cost averaging.