Many SA authors, esp. David Van Knapp, David Fish, Low Sweat Investing, Dividend Growth Investor, Dividends4Life explained in details cons and pros of dividend growth investing. I'd like to add a new argument in favor of this investing style.
Let me start with some not so usual definitions:
1) Small investor is
a) a person who exchange his/her money for partial ownership in a public company via stocks AND
b) held these stocks longer than 1 year AND
c) a person who can risk with amount of money below N (peek a number for N between 1000 $ and 1,000,000 $)* AND
d) a person who monitor his/her investments
2) Dividend is a monetary signal that allows a public company to confirm that it really earns or has money.
3) Monitoring is a process then a small investor use his/her own time and in some cases money to get information about the company he/her invested in.
From these definitions a reader can correctly conclude that I think that active buy & hold strategy is suitable for a small investor. The word "active" here is the synonym for the word monitor. As soon as we recognize that investor activities are not ended with stock purchase, we can easily argue why small investor should stay with dividend growing stocks:
DIVIDENDS ARE THE CHEAPEST WAY TO MONITOR INVESTMENT.
The ratio of (amount of time and money for company monitoring) to (time for selection of company to invest in and amount of money actually invested [including brokerage fees, spread between ask/buy prices, etc]) is small for dividend growing stocks because company send larger signal about success of it business each time it increases dividends.
A dividend growth investor might monitor only (usually once a year) that dividends are higher (usually for expected number) than they were previously. If the expectation is validated by the company a small investor own, he/she can turn off monitoring for a year.
* A cheap index fund or ETF is probably more suitable if total investment is below 1000$ for diversification purpose.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.