ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Bonds (Usually) Have Lower Returns and Price Volatility As lower-risk income investments, bonds tend to offer lower yields and returns than many dividend stocks. On the plus side, bonds tend to be less volatile than stocks since their return is driven by fixed interest payments rather than capital appreciation.

Detailed explanation-2: -Another big difference is how they generate profit: stocks must appreciate in value and be sold later on the stock market, while most bonds pay fixed interest over time.

Detailed explanation-3: -Companies that pay dividends are still stocks and not bonds. While many of these stocks, especially those that consistently pay dividends, may be less volatile than some other equities, they are still subject to many of the factors that impact the stock market as a whole.

Detailed explanation-4: -Dividends are income payments made by companies to shareholders and interest is income paid by companies or governments to their bond holders.