Dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price. It is often expressed as a percentage and is used by investors to understand the return on investment from dividends alone, ignoring capital gains. Comparing the dividend yields of different companies can help investors find the most lucrative opportunities.
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Jenna Lofton, MBA is a stock trading and investment expert with over a decade of experience in the financial industry. She began her career as a financial advisor on Wall Street and now helps everyday investors make smarter financial decisions through StockHitter.com.
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