Better value is a better yield

When looking at investing in a share with a strong dividend policy and hefty dividend growth it is glaringly obvious that the cheaper you get the share for the better the yield will be. The dividend will obviously be the dividend but the yield will be better.

Some advisors suggest drip feeding cash on a monthly basis to avoid swings in the share price and give more of an average. This is obviously far less risky but can be far less fruitful. I am more keen to wait until there is a retrace in the share price and, so long as this isn't due to severe bad news or a reduction in the dividend, take a position that I'm happy with. This way I can take advantage of better yields.

This can be liable to downsides. In recent years I've watched a number of shares waiting for said retrace only to watch the share price fly, Interserve and Cineworld are two examples. That said its always better to miss a winning opportunity then to suffer a loss. Or at least that's what I keep telling myself.