When we talk about qualified dividends, what comes to many minds is some form of payment from a bank for a checking or savings account. The question is; what is a dividend? Well, simply put, a dividend is a form of payment by which a corporation pays their shareholders or stockholders. In most cases, dividends are given out whenever there is a surplus profit apart from the corporation’s reinvestment activities. Depending on the type of dividend which is usually defined by being qualified or unqualified, dividends can be accessed by an individual, partnerships, cooperatives, investors or companies. Other types of dividends include cash dividends, stock dividends, property dividend, scrip dividend and liquidating dividend.
