Dividend stocks come in all shapes and sizes, but income investors are often drawn to those with the highest yields. Unfortunately, companies that pay a monster dividend often have dwindling prospects for growth, which can lead to underperformance or even a net loss for shareholders.

With that in mind, income investors should avoid chasing high yields and instead focus on buying dividend stocks backed by thriving businesses. Stocks like that have a good shot at beating the market. For instance, Apple (NASDAQ: AAPL) and Walker & Dunlop (NYSE: WD) pay a quarterly consideration to shareholders, and both stocks have significantly outperformed the S&P 500 over the past five years.

Here's what you should know.

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Source Fool.com