Investors generally want their investments to pay off for them. Dividend investors also want their investments to pay them. That payment usually comes in the form of dividends -- cash payments companies make to shareholders as a way to share profits. Collect enough dividends and you can go some way toward paying your living expenses.

So how do you maximize your dividends and get the most bang for your buck? One way is to buy stocks with the highest yields. But be careful chasing stocks that pay huge dividends. They can end up being yield traps: Companies that ultimately lose you your investment because they're fundamentally flawed.

In my search for solid, high-yielding stocks, I've found at least one that has so far managed to avoid becoming a yield trap. This dividend stock yields nearly 10% today but investors can buy it and still sleep well at night. If you were to invest $102,750 in it, this stock would pay out $10,000 in annual income.

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Source Fool.com