If you've been thinking about building a second income stream from your investments, now might be one of the best windows in years to start doing exactly that — and it all comes down to one word: dividends.

The recent market pullback has left many quality ASX dividend shares trading at more attractive prices, which in turn has pushed their dividend yields higher.

In other words, investors can potentially lock in bigger income returns now than just a few months ago — simply by investing in the same businesses, but at lower entry points.

And if you're playing the long game, this might just be the ideal time to start building that income portfolio.

Why now could be the moment

With the ASX 200 still down around 8% from its highs, many dividend-paying stocks have been caught up in the selloff. But unlike speculative tech or unprofitable small caps, some of the most consistent income payers on the ASX have held up operationally — it is just their share prices that have dipped.

That's important because dividend yields move inversely with share prices. When share prices fall and dividends are maintained, yields go up.

Take for example Accent Group Ltd (ASX: AX1) shares. They are currently down 24% since the start of the year at $1.81.

Bell Potter is forecasting a fully franked 13.7 cents per share dividend in FY 2025, which is the equivalent of 7.6% dividend yield.

The case for income investing

Investing for dividend income isn't just for retirees anymore. More and more investors are looking at dividends as a way to supplement their salary, boost cash flow, or even cover everyday living costs.

Whether it is $200 a month or $1,000 a month, a portfolio built on reliable dividend payers can turn your capital into a dependable second income — without having to sell your shares.

And with dividend yields currently elevated, investors getting in today may be able to lock in those returns for years to come, especially if companies continue to grow their payouts over time.

Foolish takeaway

It is easy to overlook dividend investing in a market focused on volatility and daily headlines. But if you zoom out, the opportunity is clear: buy quality income stocks while they're down, and let the dividends do the heavy lifting.

Markets will eventually recover — they always do. But those who start accumulating strong dividend payers now might just find themselves sitting on a cash-generating machine later.