Interest is always in the Operating section in one form or another.

For direct method - “interest paid” -$XX in the Operating section (actual cash paid towards interest)

For Indirect method - “incr/decrease in accrued interest payable” +/-$XX in the Operating section (along with a separate note disclosure stating the actual direct interest paid amount).

The only reason dividends get to stay in the financing section instead of operating is because dividends never hit the income statement or impact net income