Most dividend investors are keenly aware of two things.
First, dividend stocks are great vehicles for generating a reliable source of income that can be reinvested in a portfolio or used for regular living expenses
It’s always great to hold a stock that rewards investors. And second, you can have too much of a good thing when it comes to high yield. You don’t want to fall for dividend traps, in which the yield is high only because the stock price has tanked in recent months.
And you want to make sure that the dividend you’re getting is sustainable. So when looking for high-yield dividend stocks, I prefer those that not only have a high yield but are also growing the overall dividend payout. And in the best cases, companies are also seeing gains in stock prices.