What are high yield dividend stocks?
A dividend is a payment from a company to shareholders, akin to a profit distribution. According to Investopedia, a dividend yield is a calculation showing how much is paid out as a function of the current stock price.High-Yield Qualified DividendsQualified dividends are those from any company that pays corporate tax. According to the IRS, the tax rate on qualified dividends was 15 percent as of 2010. A qualified dividend stock that yields more than three times the after-tax returns compared to U.S. Treasury bills is considered high yield.High-Yield Non-Qualified DividendDividends arising from companies that do not pay corporate taxes are termed non-qualified dividends. An example of a type of company that does not pay corporate tax is a real estate investment trust. Non-qualified dividends are treated as ordinary income.High-Yield Dividend Foreign StocksForeign stocks that pay substantial dividends are called foreign high-yield dividend stocks. In most scenarios, taxes must be paid to
