I'm thinking of adding some ESV to my income portfolio but I'm not sure what kind of dividend it pays. I know some foreign companies are not qualified but I can't seem to find that info. If anyone knows a way to check for this info on any stock, I'd appreciate hearing about it. Thanks!
"You must hold of 60 days before dividend is declared.".....for it to be a qualified dividend.
Robertjohn, you are absolutely correct. I erred when I posted that you had to hold onto a stock for a year, before the dividend becomes 'qualified'. Thank you for pointing out my error, I stand corrected.
My ESV dividends are paid as qualified dividends because I've held shares in ESV for over a year. Yes, if you own ESV for over a year, the dividends will be paid out as qualified dividends, same as American stock dividends.
Whether or not a dividend is qualified or ordinary completely depends upon the time that you've owned the shares. If you own shares in a company for a year or more, their dividend is a qualified dividend and taxed at a preferential capital gains tax rate. If you own the company for less than a year, the dividends will be ordinary dividends and will be taxed at a normal income rate.
This holds true for any dividend stock you purchase. So, if you do purchase shares of ESV, the dividends will be ordinary dividends for four quarters. After that the dividend payouts from ESV will be taxed as qualified dividends.
Simple rule for all stock dividends: Held stock for less than a year, then ordinary. Held stock for more than a year, then qualified. Hope this answers your question.