From The Motley Fool
The focus of investing in “dividend stocks on sale” is to collect future dividends. Therefore, this method is geared toward that goal first, and toward possible stock price appreciation second. This isn’t an effort to find price bottoms. It’s a process to buy dividends at a reasonable price. As a result, stocks presented here are typically on a downward trend. And, they will often continue on that downward trend over a period of months, providing opportunities to obtain additional dividends for collecting and reinvesting as they do. Simply put, this is about creating as many future dividends as possible.
Stock data from Yahoo Finance and Stockcharts.com.