Dividend:
A dividend is a payment made by an enterprise to its shareholders as a distribution of profits. A corporation may retain a portion of its earnings and pay the remainder as dividend.
Interest:
Interest is the fee paid by the borrower of assets to the owner as a compensation for the use of the assets. It is most commonly the price paid for the use of borrowed money, or money earned by deposited funds.
Differences:div class=”tbl-container”>
| Basis | Dividend | Interest |
|---|---|---|
| Definition (www.oxforddictionaries.com) |
A sum of money paid regularly (typically annually) by a company to its shareholders out of its profits (or reserves). | Money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt. |
| Synonyms | Coupon, reward, allowance, premium, proceeds | Enthusiasm, importance, sympathy, passion, experience |
| Antonyms | Loss | Indifference, hate, boredom, dislike and insignificance |
| Types | Its types are:
|
Its types are:
|
| History | According to historian Paul Johnson, the lending of “food money” was commonplace in Middle East Civilizations as far back as 5000 BC. They regarded interest as legitimate since acquired seeds and animals could “reproduce themse4lves”; whilst the ancient Jewish religious prohibitions against usury were a “different view”. On this basis, the Laws of Eshnunna instituted a legal interest rate, specifically on deposits of dowry, since the silver being used in exchange for livestock or grain could not multiply of | |
| Word origin | It was originated in the Late 15th century: from Anglo-Norman French dividende, from Latin dividendum ‘something to be divided’, from the verb dividere. | It was originated from Late Middle English: from Anglo-Norman French interesse, from Latin interesse’differ, be important’, from inter-‘between’ +esse’be’. The -t was added partly by association with Old French interest ‘damage, loss’, apparently from Latin interest ‘it is important’. |
| Pronunciation |
|
|
| Advantages/Benefits | Its advantages are:
|
Its advantages are:
|
| Disadvantages | Its disadvantages are:
|
Its disadvantages are:
|
| Example in Sentence |
|
|
