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Ordinary Dividends

Ordinary Dividends Definition

Ordinary Dividends are shares of a corporation's profits passed on to the shareholders. For tax purposes, the Internal Revenue Service categorizes dividends into ordinary and qualified dividends.


Additional meaning of Ordinary Dividends:

All dividends are considered ordinary unless they are classified as qualified dividends. Dividend income is one of the major advantages of stock ownership as they provide regular income for investors.








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