What are dividends?
by TurboTax• Updated 2 weeks ago
A dividend is a portion of earnings that a company or mutual fund can give to you when you’re a shareholder.
Dividends can be either:
- Nonqualified (ordinary), which are taxed as ordinary income, or
- Qualified, which are taxed as long-term capital gains at a lower rate.
Select a type of dividend to learn how they're categorized.
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