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What Are Qualified Dividends?

By Matthew DiLallo – Updated Jun 8, 2025 at 11:04PM

Key Points

  • Qualified dividends meet specific criteria and are taxed at lower rates, saving taxpayers money.
  • Nonqualified dividends are taxed at the higher ordinary income tax rate.
  • Investing in qualified dividend stocks in taxable accounts can significantly reduce tax burdens.
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