# Qualified Dividend

*Taxes — Finicade finance glossary*

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.

**Also known as:** qualified dividends, ordinary dividends

**Related terms:** [Dividend](https://finicade.com/glossary/dividend), [Long-Term vs Short-Term Capital Gains](https://finicade.com/glossary/long-term-vs-short-term-capital-gains), [Capital Gains Tax](https://finicade.com/glossary/capital-gains-tax), [Dividend Yield](https://finicade.com/glossary/dividend-yield), [Taxable Income](https://finicade.com/glossary/taxable-income)

Source: https://finicade.com/glossary/qualified-dividend