07/04/2024
📌 SAVE THIS POST
Ever wonder how dividends are taxed if your stock is held in a taxable account.
In this post, I am going to show you 1 of the 2 primary ways dividends are taxed. Dividends are taxed usually based on how long you have held the stock. They will either be QUALIFIED dividends or ORDINARY dividends.
A dividend is considered qualified if the shareholder has held a stock for more than 60 days in the 121-day period that began 60 days before the Ex-dividend date. The ex-dividend date is one market day before the dividend’s record date. The record date is when a shareholder must be on the company’s books to receive the dividend.
Tax implications for dividends from foreign companies, REITs, and MLPs can differ.
In short, hold your stock for a long time and get better tax rates on both your gains and dividends.
✏️ The Investor’s Edge is my weekly newsletter that has in-depth information with the goal of not only keeping you well informed of what’s going on in the stock market, but to also give you an EDGE. Sign up for FREE! See the link in my bio!
Follow 👉
Disclaimer: Our page is intended for informational and educational purposes only and should not be taken as financial advice.