Qualified Dividend
A US tax classification for dividends paid by a domestic corporation (or a qualifying foreign corporation) on stock the investor has held for the required holding period (more than 60 days during the 121-day window around the ex-dividend date). Qualified dividends are taxed at the long-term capital-gains rate (15% for most investors; 20% for top-bracket; 0% for low-bracket) rather than ordinary income rates. Non-qualified dividends (most REIT distributions, MLP distributions, very-short-hold dividends) are taxed at ordinary income.
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