Qualified Dividend
Also called: qualified dividends, ordinary dividends
A qualified dividend is taxed at the lower long-term capital gains rates rather than as ordinary income. Qualifying requires the payer to be a US or treaty-country corporation and the shares to be held for a minimum period around the ex-dividend date. REIT distributions and interest dressed as dividends generally don't qualify, which is a real reason high-yield holdings often belong in a sheltered account.