Definition of «qualified dividends»

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.

Sentences with «qualified dividends»

  • The dividend income from the 2,000 shares held 49 days would not be qualified dividend income. (fidelity.com)
  • The tax rate on qualified dividends for investors that have ordinary income taxed at 10 % or 15 % is 0 %. (investopedia.com)
  • Certain dividends known as qualified dividends are subject to the same tax rates as long - term capital gains, which are lower than rates for ordinary income. (fidelity.com)
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