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While unqualified dividends are taxed as ordinary income, qualified dividends are taxed at much lower rates. Qualification status basically requires you to have

While unqualified dividends are taxed as ordinary income, qualified dividends are taxed at much lower rates. Qualification status basically requires you to have owned the stock for a couple months. You can see the details in layman's language at https://www.nerdwallet.com/blog/taxes/dividend-tax-rate/ https://www.nerdwallet.com/blog/taxes/dividend-tax-rate/

MrPowers 6y ago
This is a great point, thanks for commenting. Still thing my main point stands, but more because capital gains taxes can be deferred. It's amazing how convoluted / confusing dividend taxation is.