Dividends Versus Interest Income | Barron’s

To the Editor:
There are many, many choices (“Barron’s 12 Best Income Investments for the New Year,

Cover Story, Dec. 30). Two things to remember: 1) reward equals risk (there’s no such thing as a free lunch), and 2) dividends are taxed at a favorable rate over interest income. Having started relatively late in life, I am amazed at the power of compounding of dividends.

Steven Orchard, On Barrons.com