"Qualified dividends" are taxed as long-term capital gains, or not taxed at all if you're in the 15% or 10% bracket: http://en.wikipedia.org/wiki/Qualified_divi

"Qualified dividends" are taxed as long-term capital gains, or not taxed at all if you're in the 15% or 10% bracket: http://en.wikipedia.org/wiki/Qualified_dividend http://en.wikipedia.org/wiki/Qualified_dividend. Although apparently the reduced rates will expire in 2012 unless they're extended again.