Published on 5 Dec 2022 on SmartAsset via Yahoo Finance
Qualified vs. Non-Qualified Dividends: What's the Difference?
qualified vs nonqualified dividends
Many people wonder whether they should be investing in qualified or non-qualified dividends and what the differences are. The largest difference is in how each is taxed. To help you determine what stock paying dividends could have a place in your individual portfolio, you should examine the company’s financial statements, dividend yield, prospects for the future and your own risk tolerance. You also determine if the dividends are regular dividends or qualifying dividends. That makes a significant difference in what stocks you invest in due to differences in taxation. A financial advisor can help you find the best dividends for your portfolio and even manage your assets on your behalf.
What Is Dividend Income?