As the article states, Dividends and Dividend growth make up almost 90% of long term returns and the key is the following quote from the article:
"For my dividend retirement plan, I am focusing not only on the dividend, when selecting stocks however. I try to select companies that regularly pay and increase dividends, and also have the potential to increase profits over time. Rising profits supply firms with the firepower to increase dividends over time. In addition, I also focus on qualitative characteristics such as competitive advantages, strong brand names and products or services that clients are willing to pay top dollars for. Another important factor is valuation, since overpaying for even the best income stocks will surely lead to subpar returns for the first several years of the investment".
And this thought (I think it was chowder or RAS that espoused it in one of the first articles I read after signing up for SA) was the impetus for me to switch to a dividend growth strategy versus whatever the method I used was called:
"On the other hand, dividend income has remained more stable than capital gains. Since 1977, the dividend income for S&P 500 has experienced declines in only 4 out of 34 years. As a result, it is no surprise that the predictable nature of dividend payment amounts is appealing to investors in retirement."
I further posit that it is appealing to investors not in retirement but planning for it. Those dividends are a valuable source of capital when Mr. Market is being fickle allowing you to buy when you should be buying -- low.
I don't know a consistently successful market timer.