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How Much of Your ETF's Dividend Income Is Qualified?

Adam McCullough, CFA (adam.mccullough@morningstar.com)

A version of this article was published in the March 2018 issue of Morningstar ETFInvestor. In this article, I'll zero in on an often overlooked source of tax costs and examine the topic of qualified dividend income, or QDI. The Jobs and Growth Tax Relief Reconciliation Act of 2003 made dividend payments more attractive because it introduced a lower tax rate for qualified dividend payments.