Qualified Dividend
A type of dividend to which capital gains tax rates are applied. These tax rates are usually lower than regular income tax rates. Investopedia Says:
Ordinary dividends that do not qualify for this tax preference are taxed at an individual's normal income tax rate.
In order to qualify:
1. The dividend must have been paid by an American company or a qualifying foreign company.
2. The dividends are not listed with the IRS as dividends that do not qualify.
3. The required dividend holding period has been met. Related Terms:
Capital Gain
Declaration Date
Dividend
Ex-Dividend
Holder of Record
Income Tax
Payment Date
Record Date |