Ask Harry: What’s the difference between a dividend and a distribution?

dividend distribution

People often tell me that they find investing intimidating because of all the technical language involved in becoming a competent investor.

Thankfully, for the most part you can be blissfully ignorant of 99% of the technical terms in finance and still beat the majority of professional investors out there.

I’d go so far as to say that keeping things uncomplicated is the key skill you need to develop if you’re going to get ahead financially.

That said, there are a few terms you really do need to familiarise yourself with on your journey to financial security.  Two of the more confusing are dividends and distributions.  Often these terms are used interchangeably, even though they have very different meanings.

Continue reading “Ask Harry: What’s the difference between a dividend and a distribution?”