Dividends aren't the main reason most investors choose a particular stock. That's especially true for tech businesses, which usually have ample opportunities ahead of them to spend cash on productive growth initiatives.

But a good balance between growth and income can provide stability for a portfolio. The automatic reinvestment of dividends can amplify stock returns, too.

With those benefits in mind, let's look at a few attractive dividend stocks to add to your watch list this month. Read on for some good reasons to buy Garmin (GRMN 0.34%) and Electronic Arts (EA -0.84%) in July.

Garmin will be back

Garmin is currently enduring a growth hangover that's tied to the quick expansion days of the pandemic. Sales fell 2% in the most recent quarter that ran through early April, and profitability declined. It has been especially hard to boost sales in its outdoor division that caters to smartwatch fans.

But four of Garmin's five main segments posted growth last quarter, including the fitness, aviation, and marine divisions. This diversification provides a valuable source of stability despite weakness in parts of the consumer tech world.

Garmin also remains highly profitable. Operating profit margin landed at 17% of sales in fiscal Q1, which was down from 20% a year ago but still higher than what many tech device specialists can claim.

The stock's valuation looks attractive today at roughly 4 times annual sales, down from a late-2021 high of closer to 7 times sales. And at that price, investors can collect a yield of nearly 3% while they patiently rate for a rebound in Garmin's business over the coming quarters.

Electronic Arts is playing to win

Electronic Arts is currently capitalizing on its prime position in an attractive industry. In mid-May, the video game developer announced 11% higher sales for its fiscal Q4. Net earnings improved to $800 million for the year from $790 million in fiscal 2022.

Most Wall Street pros are predicting continued gains ahead, even though demand for digital entertainment has been slowing. EA's sales should rise by about 4% in fiscal 2024, according to their predictions, as earnings climb to $6.86 per share from $6.47 per share a year earlier.

EA needs to deliver a steady stream of innovative hit content launches to keep those trends moving in the right direction. But the company has proven over the past few years that it can continuously raise the bar across niches like casual gaming and those high-value franchises such as FIFA and EA Sports that attract millions of subscribers each season.

Shares don't look overvalued here in early July, either, at 4.9 times annual sales. Investors had been paying more than 7 times sales as recently as mid-2021, after all.

EA's dividend is modest, to be sure, because management is more focused on extending its growth momentum. But income investors can still benefit from having this tech stock in their portfolio as the leading game developer boosts annual sales and profits over the next several years while directing more cash toward stock buybacks and rising dividend payments.