How are dividends taxed?

If you receive dividends through stocks, exchange-traded funds, or mutual funds, you’ll likely owe taxes on the income. Here’s what you need to know. What are dividends? Dividends are shares of profit a company gives its shareholders. Most distributions are paid out in cash, but a company may also give additional stock, property, or other assets. Dividend income is taxable. How are dividends taxed? The type of dividend you receive, qualified or nonqualified, determines its tax implications. Nonqualifi ...