Qualified Dividends refers to dividend payments received from certain types of stocks or funds that are eligible for a special tax rate. This lower tax rate is applied to both individual and corporate dividend income. To be considered as qualified, the dividends must meet certain requirements such as being paid by a US corporation, being received from certain foreign companies or qualified investment funds, and being paid on stocks or funds that are held for a minimum of 61 days during the 121-day period that begins 60 days before the ex-dividend date.