With short-term interest rates still sitting at near 0%, more and more investors have begun to seek out companies paying a reasonable dividend yield. But as many have pointed out, including myself, it’s not just about the yield. The consistency and growth rate of the dividend are of utmost importance as well. With that in mind, let’s take a look at two solid companies with low debt, dividend yields above 4%, and a strong five year dividend growth rate above 8%.

The continued volatility in European bond markets is not surprising. Many of us predicted that the euro was doomed as soon as members of the euro zone pushed their public debt above 100% of GDP. Now their behavior is coming home to roost as markets are sending bond yields ever higher.

It is not always easy to turn down the enticing dividend yield of a company that is paying a yield of 5% while instead opting for a yield of below 3% in the hopes that eventually your returns and yield on cost will at least break even. It’s also not obvious how long it might take for the lower yielding stock to catch up with the higher dividend yielding stock. To help answer this question I looked at two companies that offer these different alternatives: Verizon (VZ) and Wal-Mart (WMT).

With short-term interest rates near 0%, it is enticing to buy high yielding dividend stocks and just sit back and watch the dividend checks roll in. But it is very important that investors understand that when times get tough, companies that can’t afford their dividend any more will cut it; and some will slash their dividends immensely.