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 Commentary
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 Links
How and Why Do Companies Pay Dividends?
The Importance of Dividends
How Dividends Work For Investors
Declaration, Ex-dividend And Record Date Defined
See also: Capital Gain, Declaration Date, Dividend, Ex-Dividend, Holder of Record, Income Tax, Payment Date, Record Date