No. of Recommendations: 3
Bonds pay interest. Stocks pay dividends. They are different things.

The company, if doing well, should increase the dividend paid to its owners (shareholders). If doing poorly, it may reduce or omit the dividend. The shareholders will be disappointed but they should understand.
The interest on bonds is an obligation of the company. It will pay the obligatory amount. It will NEVER increase the payment no matter how well the company is doing.
If short on money and the company cannot pay both the dividend and the interest on its bonds, the interest on the bonds comes first.
Best wishes, Chris
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.