NXC DCA Calculator
Dollar Cost Averaging — Nuveen California Select Tax-Free Income Portfolio
Historical data shows that a consistent $500 monthly investment into Nuveen California Select Tax-Free Income Portfolio (NXC) starting in 2020 would have turned a total investment of $46K into $48K today. This represents a total return of 4.9% over the 6-year period, compounding through dividend reinvestment and market growth.
The Impact of Dividend Reinvestment (DRIP)
Nuveen California Select Tax-Free Income Portfolio does not currently pay a notable dividend. For growth-focused stocks like NXC, 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 $48K without the need for dividend reinvestment.
NXC vs. S&P 500 (SPY) Benchmark
When comparing this dollar cost averaging strategy against a broad market index,NXC underperformed the S&P 500 ETF (SPY). The same $500 monthly contributions into SPY would have grown to $84K, compared to NXC's $48K.