- Dividends are distributed on a continuing
amortizedbasis. That is to say that the 2% dividend will be earned evenly each and every day over the next 365 days.
- Dividend rates are fixed, and companies will not increase or cut dividends at any time.
- Interest rates vary from individual to individual and institution to institution.
- Dividends are not constant. Companies will pay dividends on any day they choose. Some companies pay quarterly, while others pay on an annual basis.
- Dividends are not certain. Companies can raise, lower or omit dividends.