qualified dividend

Definition

A dividend that is taxed at a lower tax rate, because it follows a given set of specifications. The qualifications include that it must have been paid by an American company, or a company from another country on the qualified list, it must not be on the IRS's list of non-qualifying dividends, and it has fulfilled the required holding period.

Use qualified dividend in a sentence

The qualified dividend was a valuable part of the company's strategy to keep its shareholders as happy as possible since they also owned the company.

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If you want to know how much a purchase will cost then you can't forget to also factor in the qualified dividend.

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Every quarter the stock pays a qualified dividend to the shareholders that hold that stock at the end of that quarter. It is a nice percentage each quarter that they pay out.

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qualified distribution Qualified Domestic Institutional Investor (QDII)