Father Knows Growth and Income Best

Forget the golf clubs! We have some great investment ideas Foolishly wrapped up in this special series for Father’s Day.

My stepfather and I have locked horns on one investing topic more than once: whether the best investors focus only on stocks that pay dividends.

I always argue that while many big dividend payers are slow and steady, some are downright stinkers, since their growth cycles conked out ages ago. I consider their dividend yields suspiciously bribe-like. And if things get really ugly in companies' businesses, they might always cut their dividends, too. Recent examples of such disappointments include Citigroup (NYSE: C) and Washington Mutual (NYSE: WM).

Instead, I tend to prefer innovative, relatively young companies that still have years of growth ahead of them and that plow their cash back into future growth initiatives.

My stepfather likes to say, "Well, it's gambling if you invest in a stock that doesn't pay dividends." Um, ouch.

Somehow, I never can change his mind. Luckily, though, in honor of Father's Day, I can come to a compromise. I've found several stocks that pay dividends yet still have exciting growth stories, too.

In other words, you don't have to focus on boring slow-growers to add some dividend income to your investments. There are more exciting ideas out there for those who look for them. Here are just a few examples to back up our thesis:

Our compelling ideas include McDonald's, a bluer-than-blue chip that has recently staged a brilliant, growth-oriented turnaround. Whole Foods is an innovative grocer, and Yum! Brands' roster of quick-serve restaurants offers notable exposure in high-growth China. As for the more obscure Steelcase, it's an office-furniture company with the biggest dividend yield of this array of choices, but it's also quite an innovator in green design -- and a Motley Fool Income Investor pick to boot.

These aren't meant to be recommendations; they're simply ideas for investors seeking the best of both worlds. Growth and income -- wow, it looks as though Father knows best after all.