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Dividends are payments made by a corporation to its shareholders from its profits. In trading, dividends are an important consideration for investors, particularly those focused on income-generating strategies. Traders often evaluate dividend yields when selecting stocks for long-term investments. Dividends can impact stock prices, as companies that pay consistent dividends are seen as financially stable. Traders use dividend information to assess a company's financial health and to decide when to buy or sell shares in dividend-paying companies.
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