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What is the difference between a dividend and an interest payment?
assistant
The main difference between a dividend and an interest payment is that a dividend is a portion of a company's earnings and profits that is distributed to shareholders, while an interest payment is money paid from a lender to a borrower as a reward for using their money. Dividends are typically paid out as a lump sum and are taxed differently than interest payments, which are generally paid periodically and taxed as income.