Dividends4Life: Buy and hold dividend investing is not dead (DIV)

Many investors have been told that buy and hold does not work anymore. With almost everyone glued to screens streaming real-time quotes, news and charts and with so many institutional investors having extremely short term timeframes, one would certainly believe that buy and hold investing
is a dinosaur strategy.

Despite the increasing noise in the markets, buy and hold investing does work. Investors who dismiss buy and hold investing altogether due to the poor performance over the past decade might be missing out on some great opportunities. Most of the quality dividend companies that were overvalued in 2000 are still quality businesses. Those businesses are attractively valued today, and yield much more than what they did in the year 2000. These businesses are also still growing, which means that investors should expect strong dividend growth in the future, which would increase their yield on cost. In addition to that, by reinvesting dividends, investors would be able to further compound their dividend income.

Source: Dividend Growth Investor

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