Difference Between: Dividend and Interest

Dividend & Interest.

Discussion – Dividend and Interest  – HSC Board – Easy way to learn and memorized – class 12th – S.P – Notes of source of business finance – Difference between  Dividend and Interest, Distinguish between  –  sources of Capital – Secretarial Practice – Notes,  & Distinguish Between – according to the New Textbook for HSC Board –Difference between, Study material, studies notes, study notes.

difference between dividend and interest

Sr. NoPoint to DiscussDividendInterest
1.MeaningReturns on shares is dividend.A Returns on debenture is interest.
2.PaidDividend is paid when company earns profit.Interest is pad every year whether company earns profit or loss.
3.RateThe rate of dividend is fluctuated for preference and fixed for equity share.The rate of interest is fixed.
4.To whom PaidThe dividend is paid to the shareholders.Interest is paid the debenture holders.
5.AccumulationDividend is not accumulated from loss making year into profit making year.Interest is accumulated from profit making year into loss making year.
6.Interim PaymentBoard of Directors can declare interim dividend if authorized by Articles of Association.There is no interim interest. It is paid as per the terms.

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