Investors in income stocks typically hold for the long term. They’re less interested in the daily or weekly ups and downs of a stock than whether it can deliver modest, but dependable, dividend increases year after year.
So whether a stock is setting up in a base or not is of less interest that it would be to a growth investor hoping to catch the next rally.
But on the theory it’s good to get off to a good start with a stock, there are numerous stocks breaking out that are on IBD’s dividend leaders list that are setting up in bases.