The basic idea is to collect dividends by investing in well-established, “blue-chip” type companies when those companies are “on sale” with respect to various technical indicators, and then holding those companies forever if possible. Warren Buffett has said his favorite holding period is forever. I see no reason to disagree with him.
Dividend collecting and reinvesting is a step by step multi year project so I want to hold stock in companies that I shouldn’t have to worry about. These are generally large, well known companies that have been in business for many years and show every reason to be in business and pay dividends far into the future. Typically they create products that are necessities for consumers or industry. Products people or companies have to use and reuse month after month, not products of choice like the latest fashion trend or tech gadget. This leads me to a select group of companies to follow which simplifies the process, and simple is always better.
So the basic idea is to identify great companies with essential products, invest in those companies when they’re “on sale,” then collect and reinvest dividends for as long as possible. That’s it.