Historical data shows that a consistent $500 monthly investment into HUB Cyber Security Ltd. (HUBC) starting in 2020 would have turned a total investment of $37K into $3K today. This represents a total return of -92.5% over the 6-year period, compounding through dividend reinvestment and market growth.
The Impact of Dividend Reinvestment (DRIP)
HUB Cyber Security Ltd. does not currently pay a notable dividend. For growth-focused stocks like HUBC, 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 $3K without the need for dividend reinvestment.
HUBC vs. S&P 500 (SPY) Benchmark
When comparing this dollar cost averaging strategy against a broad market index,HUBC underperformed the S&P 500 ETF (SPY). The same $500 monthly contributions into SPY would have grown to $55K, compared to HUBC's $3K.