A high-quality, fairly valued DGI portfolio offers the best protection against a bear market for two primary reasons: First, dividends are paid on the number of shares you own and not the stock price. Second, fairly valued stocks are likely to recover very quickly – assuming that fundamentals remain intact.
“Price is what you pay. Value is what you get.” If truly understood, these simple words represent perhaps some of the most important bits of investment wisdom that an investor could ever receive. Therefore, stated succinctly, the answer to the question when to buy is simply when you are reasonably certain that the company’s stock can be purchased at a sound valuation.