Often, the allure of a stock's dividend yield prompts investors to make a purchase. However, yield might not be the best characteristic to consider when evaluating a dividend stock. Many companies with yields surpassing the average of the benchmark S&P 500 often have low valuations and underperform the market over long time frames.

A frequently overlooked statistic in selecting dividend stocks is a company's dividend growth rate. Companies with annual growth rates exceeding 6% typically have high valuations and deliver market-crushing returns on capital over extended periods.

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Source Fool.com