What Are Qualified Dividends

A Qualified Dividend must meet 3 requirements the most interesting of which is that it must meet the holding period requirements.
They require that the shareholder must have held the stock for at least 60 days during a 121-day period that begins 60 days before the ex-dividend date.
The ex-dividend date is the first day after the day a shareholder is entitled to a dividend.

Non-qualified Dividends are taxed as Ordinary Income with a currently maximum rate of 37%.
Taxes on qualified dividends are more favorable and mimic long-term capital gains tax rates, which are currently at 0%, 15%, and a maximum of 20%.

The dividend must be paid from a US corporation or a qualified foreign corporation. A qualified foreign corporation is one that is incorporated in the US; is eligible for an income tax treaty with the US; OR, the stock is readily traded on a US exchange.
The dividend cannot be a non-qualified dividend (discussed below).
The shareholder must meet the holding period (discussed above).

Those dividends that did not meet the requirements of a qualified dividend as previously mentioned.
Capital gains distributions.
Dividends paid on bank deposits, such as credit unions or savings and loans.
Dividends from tax-exempt corporations or farmers cooperatives.
Dividends paid to an ESOP (Employee Stock Ownership Plan).
Dividends on stocks where you hold a short derivative position.
Payments in lieu of dividends.
Dividends paid by REITs or MLPs.
Non dividend distributions, payment made that is not from earnings and profits.
Liquidating dividends.