The key difference between ordinary and qualified dividends is the tax rate you'll pay on them
• Ordinary dividends are payments made to shareholders that are taxed at the same rate as their regular income. • Qualified dividends are taxed at a lower capital gains rate of no more than 20%. • Most dividends from stock in US companies held for more than 60 days will pay qualified dividends. Many investors purchase shares of stock in companies that pay dividends, or payments made directly to shareholders as a portion of profits. For some, dividend investing is part of a strategy to produce