Historical data shows that a consistent $500 monthly investment into L.B. Foster Company (FSTR) starting in 2020 would have turned a total investment of $49K into $121K today. This represents a total return of 148.5% over the 6-year period, compounding through dividend reinvestment and market growth.
The Impact of Dividend Reinvestment (DRIP)
L.B. Foster Company does not currently pay a notable dividend. For growth-focused stocks like FSTR, dollar cost averaging relies entirely on price appreciation. Over the 6-year period, the strategy successfully captured the stock's price movements, resulting in a final portfolio value of $121K without the need for dividend reinvestment.
FSTR vs. S&P 500 (SPY) Benchmark
When comparing this dollar cost averaging strategy against a broad market index,FSTR outperformed the S&P 500 ETF (SPY). The same $500 monthly contributions into SPY would have grown to $87K, compared to FSTR's $121K.