What are the benefits of qualified dividends?
Qualified dividends are taxed at a lower rate than ordinary income, which can lead to significant tax savings.
How do qualified dividends differ from ordinary dividends?
Qualified dividends must meet specific criteria, including being paid by a U.S. corporation or a qualified foreign corporation.
Can you give me an example of a qualified dividend?
Sure! An example would be dividends paid on shares of a company like Apple, as long as they meet the holding period requirements.
What are the holding period requirements for qualified dividends?
Generally, you must hold the stock for at least 61 days during the 121-day period that begins 60 days before the ex-dividend date.
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