Qualified Dividend

A dividend that meets IRS requirements for taxation at the lower long-term capital gains rate rather than the higher ordinary income rate. To qualify, the dividend must be paid by a U.S. corporation or a qualifying foreign corporation, and the shareholder must hold the stock for a minimum period (typically more than 60 days during the 121-day window around the ex-dividend date). The tax advantage makes qualified dividends particularly attractive for income-focused investors in higher tax brackets.