Ordinary Dividends


DEFINITION of 'Ordinary Dividends'

A share of a company's profits passed on to the shareholders on a periodic basis. Ordinary dividends are taxed as ordinary income and are reported on Line 9a of the Schedule B of the Form 1040. All dividends are considered ordinary unless they are specifically classified as qualified dividends.


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BREAKING DOWN 'Ordinary Dividends'

Dividend income is one of the major advantages of stock ownership. Companies will report all aggregate ordinary dividends in box 1 of the Form 1099-DIV. Mutual fund companies pay and report dividends in the same manner.

Find out how ordinary dividends affect your tax return; check out Who needs to fill out IRS Form Schedule B?

  1. Dividend

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  2. Illegal Dividend

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  3. Stock Dividend

    A dividend payment made in the form of additional shares, rather ...
  4. Qualified Dividend

    A type of dividend to which capital gains tax rates are applied. ...
  5. Nontaxable Dividends

    Dividends from a mutual fund or some other regulated investment ...
  6. Benchmark

    A standard against which the performance of a security, mutual ...
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