DIVIDEND INTEREST

	DIVIDEND	INTEREST
1 2 3 4 5	Meaning Monetary return offered to share holders is known as dividend Rate Dividend is paid at fixed rate to preference share holders and at fluctuating rate to equity shareholders. Certainty(confidence) of returns Dividend may or may not be paid regularly as it depends upon the availability of profits. Priority in Payments Dividend is paid after paying interest to creditors. Interim Payment Board of directors can declare interim dividend if authorised by Articles of Association.	Monetary return offered to creditors (i.e.) Debenture holders) is known as interest. Interest is paid at fixed rate. Interest is always paid irrespective of the profit earned by the company. Interest is paid with highest priority i.e. before paying dividend. There is no interim dividend. It is paid as per the terms.