You have it right. It is so simple. I was enlightened to this method by a friend some years ago after paying high fees through a company and managed funds. I had 4 lots of fees that totalled 4.6% all up.
My friend began as a subscriber to Huntley's back in the 70's and followed their philosophy, he saw the share price fluctuate during market conditions but always had his dividends to pay a good pension to live by.
Over the years with the compounding effect he had established a sizeable amount with a relativly low exposure to risk.
