We have all heard it… Stodgy, for old people, yawn, boring! These have all been used to describe dividend growth investing. As a dividend growth investor, I sometimes think our strategy is the most misunderstood. Periodically, it is good to remind ourselves why we are dividend growth investors.

One of the many reasons I like dividend stocks is because they provide continuous feedback. As time passes, dividend investors see their income grow steadily. Each dividend and dividend increase provides reassurance that the strategy is working.

A question I often get is, “What do you think of the market? Where’s it headed?” Normally, I politely respond as expected, but occasionally I will startle the person with a reply like, “I don’t know. For me it really doesn’t matter much.” My investing goals are not defined by movements in the market.

My grandmother once made the statement, “Everyone I know is either dead, or dying.” Everyone I knew was either getting married or having kids. Contrary to the perception from popular media, not all companies are cutting dividends, many are still raising them, and some are starting a new dividends.

The buy-and-hold investment strategy has taken a lot of abuse since the market turned down.  But this isn’t the first time it has happened. Eventually, the market turns, the naysayers disappear and the buy-and-hold investors make a lot of money.

Over the last several weeks I have alluded to the fact that my stock analysis model was going through a major overhaul. Last week I put put the last piece of the puzzle in and began using the new model with the United Technologies Corp.

With the dramatic market declines over the last 18 months, most dividend stocks appear to be fairly priced. However, when you consider the dividend cuts and near-term prospects, many of the lower valuations are justified. So how do find the companies worthy of consideration?