Dividend investors have often debated the balance between high yields and dividend growth. Analysts tend to favor companies with robust dividend growth, advising investors to avoid the yield traps.

When investors are optimistic, they may be willing to pay a premium price for a stock in the hopes that the company's future earnings grow rapidly. But when investors are pessimistic, or there's an economic downturn, they may prefer to go with companies that are valued based on where they are today instead of their potential.

SPY and VYM kick off 2025 with solid gains. Find out why my top 10 dividend stocks, yielding 3.43%, have delivered an 87.57% return over 51 months.

Investors focused on dividends should be cautious about simply selecting stocks with the highest yields, as this approach can be risky.

These sensational income stocks -- sporting an average yield of 6.15% -- can fatten investors' pocketbooks for a long time to come.

I plan to leverage the market for my benefit. Read how DFP and OZKAP provide an opportunity to collect low-risk income from various companies across the market.

After 10 years of compounding, a 7% yield can give you a monthly payout equivalent to your monthly investment today. The post 7% Yield: 2 Income Stocks to Buy in February appeared first on The Motley Fool Canada.

Discover how dividend investing, combined with time and compounding growth, can build seven-figure wealth, and learn the proven strategies that separate successful dividend investors from those who fall short of their millionaire goals.