Even as an income investor you should still hope to be able to get that "income" at the right price, so valuation still does matter. Everything is entwined. Also, you've got to feel comfortable enough with the company's ability to generate a dividend. So if we shift into an economic downturn, there's more of a focus on balance sheets rather than just income statements, as debt servicing and cash flow generation becomes an issue. Ideally, you would still want to buy low and sell high.
