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Qualified dividend

A dividend taxed at the preferential long-term capital gains rate instead of ordinary income.

Why it matters

To qualify, the underlying stock must be held for more than 60 of the 121 days around the ex-dividend date, and the payer must meet IRS criteria. Most US corporate dividends qualify; REIT dividends generally do not.

See also

Educational only — not financial, tax, or legal advice.