fool.com·May 23, 2026
Investors typically choose between high-yield dividend stocks or those with a history of dividend growth, but both strategies have drawbacks, such as the risk of yield traps or overpaying for mature companies with limited growth potential.
For a professional investor, the key takeaway is to balance your dividend stock selection between high-yield opportunities and those with established growth records, avoiding the pitfalls of yield traps or overvalued mature companies. This balanced approach can help optimize your portfolio's long-term total returns by mitigating risks associated with overemphasizing either yield or growth history.