Your thought process seems pretty logical to me. Especially if you plan to hold for next 10 years or longer. They say the market is going to take a move back around 10% sometime over the next couple of months. I do not really know and no one really knows but the market does go up and then pull back and then at some point start to go up. I am not a market timer. I look at what the market is doing and buy when I see an opportunity. Maybe you want to put in say 50% of what you plan to invest in SO and then buy more on the dips, but you have to be patient. I always try to hold between 8 to 12 % of my portofolio in cash to be able to buy my long term holding stocks when the market takes a correction. Just my way of doing things. Seems to have worked for me.
However I am not sure if 8-12% total return is something we an expect. I do not plan on that and if I get it I am very happy. I plan on 5 to 7%. I understand the market hopefully total return should be higher. But I plan for less and and I am very happy with more. I have several utilities and have had for years. I am in SO and D they have both done very well for me. I cannot speak to future but hopefully over the long term history repeats. I believe the key is do your research on those stocks and industries you are interested in, read about the company, the senior management of the company, how long the senior management has been in place and how has the company performed. What future plans look like for the company and senior management. what the debt ratio is, what the return on equity is, how many years has the dividended been raised. You can find almost all of this information in annual reports, review 5 or 10 years worth. Takes time but when you invest in the right stock for the long term it pays off.
You say you have some time on your side. Not sure what your overall strategy is. One you may want to consider for example: pick 5 stocks, do your research, and re-invest your dividends. Look to see how many shares you can purchase say over a 10 or 20 year period of time by both buying on market and reinvesting your dividend. If after 20 years you can hold say 5,000 shares of 5 stocks , you will have 25,000 shares total if each is paying say 2.00 per share your making $50,000 just on dividends, that is not a bad paycheck to receive. Hoepfully over time your dividends will go up so you have a chance to double that amount over the next 20 years. I use this as an example, maybe 10 stocks each with 2500 shares is better for you but hopefully you get my idea.
Then buy at regualr intervals and re-invest the dividends and buy more at regular intervals and re-invest and watch your portofolio grow. Don't swing for the fences, 4 singles scores a run just as a homerun does. Much easier to get those singles then the home run. Patience and more patience along with good research is what makes money for individuals in the market.
You might want to consider some of the pipeline MLP's EPD. KMP, etc. Go the EPD message board and post a message to CHARTNY. He helped me a lot several yearsago with picking some winners. Most people in these are long term investors and like the dividends. Also check out TNH