Historical data shows that a consistent $500 monthly investment into Chicago Atlantic Real Estate Finance, Inc. (REFI) starting in 2020 would have turned a total investment of $37K into $41K today. This represents a total return of 11.0% over the 6-year period, compounding through dividend reinvestment and market growth.
The Impact of Dividend Reinvestment (DRIP)
Chicago Atlantic Real Estate Finance, Inc. pays a dividend (currently yielding ~0.18%). By utilizing a Dividend Reinvestment Plan (DRIP), generated dividends automatically purchase fractional shares. Over this 6-year period, regular dividend payments totaled $16K. Reinvesting these dividends continuously compounded your returns, accelerating the portfolio's growth far beyond simple price appreciation.
REFI vs. S&P 500 (SPY) Benchmark
When comparing this dollar cost averaging strategy against a broad market index,REFI underperformed the S&P 500 ETF (SPY). The same $500 monthly contributions into SPY would have grown to $56K, compared to REFI's $41K.