How To Buy Dividend Stocks At The Bottom

Everyone loves a deal and loves getting something at a rock bottom price. Dividend investors are no different. However, as long-term buy-and-hold investors, we aren't known for our ability (or desire) to time the market and call the bottom. That's not to say we can't enjoy the benefits of buying at the bottom. So, how does a long-term buy-and-hold investor accomplish this?

Granted, the technique works the other way also, in that systematically investing each month will guarantee you will buy at market highs (note I didn't say at the top). Comfort can be taken in that every protracted downturn will eventually produce an absolute bottom (i.e. a point that will never be touched again). However, throughout history highs have constantly been exceeded. Thus, there are no true tops, only recent highs. Any long-term dividend investor will tell you that the yields are better at the bottom, so forgive me for smiling the next time the market crashes.

Source: Dividend Growth Stocks

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