What is the difference between Dividends and Interest?

Dividends are known to be the distribution of the corporation to the various stockholders of the company while the interest is usually the increase that can be received depending on how much the stocks have earned for a certain period of time. These two words may sometimes be used by people interchangeably thinking that they mean the same thing but they don’t.

It is important that you know the differences between the two to help you decide what you should do next. Take note that the way that they are taxed are also different from each other. It will depend on you which method you would do more so that you can start investing.