Sentences with phrase «considered ordinary dividends»

Not exact matches

Investors should keep in mind that while monthly distributions from bond ETFs are often called «dividends,» interest from the underlying bond holdings aren't considered qualified dividends, and are taxed as ordinary income.

Since most dividends are taxed at your long - term capital gains rate, which is lower than the rate on your ordinary income, you might also consider buying dividend - paying stocks in your taxable accounts.

For the dividend to be considered as qualified divident rather than ordinary dividend, therefore subject to the favoriable tax rate, the dividends must be paid by a U.S. corporation or a qualified foreign corporation and the mutual fund that holds the dividend - paying stock must have held the equity for more than 60 days during the 121 - day period that begins 60 days before the ex-dividend date (the first date following the declaration of a dividend on which the buyer of a stock will not receive the next dividend payment.

Real estate investment trusts, or REITs, are a good example of stocks whose dividends are generally considered ordinary income.

Qualified dividends are taxed at the long - term capital gains rate, which is considered more favorable than the tax rate for ordinary dividends.

Long - term capital gains and qualified dividends are not considered ordinary income and are taxed at 15 percent, and for low income taxpayers, the rate can be 0 percent.

The Board intends to continue its approach of considering returning to shareholders any excess of earnings over the sum of ordinary dividends for the financial year and increased capital requirements, normally in the form of special dividends.