Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, it is able to reinvest the profit in the business (called retained earnings) and pay a proportion of the profit as a dividend to shareholders. Dividend payments are decided by the board of directors and must be approved by the shareholders. They can be issued as cash payments, as shares of stock, or other property. Dividends provide an incentive to own stock in stable companies even if they are not experiencing much growth. Companies with a long history of paying dividends are typically viewed as safe investments.
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Jenna Lofton, an expert in stock trading, investing, and financial planning, combines over a decade of experience with rigorous academic training. Holding dual MBAs in Finance and Business Administration from the University of Maryland, Jenna's expertise is grounded in a deep understanding of the financial markets. Her career, which started on Wall Street, has evolved into empowering others through her insights and analyses in the dynamic world of finance.
Based in New York City, Jenna's approach is informed by her hands-on experience as a former financial advisor and her keen observation of market trends. She is known for translating complex financial concepts into actionable strategies, making her a valuable resource for both seasoned investors and newcomers to the stock market. Her commitment to financial literacy and her ability to demystify investment principles have made her a respected and authoritative voice in the investment community.