qualified preferred dividend

Defined in 1 dictionary — U.S. Code

United States Code

26 U.S.C. § 1059 — for purposes of this section (9 versions over time)

The term "qualified preferred dividend" means any fixed dividend payable with respect to any share of stock which—

(I) provides for fixed preferred dividends payable not less frequently than annually, and

(II) is not in arrears as to dividends at the time the taxpayer acquires the stock.

Such term shall not include any dividend payable with respect to any share of stock if the actual rate of return on such stock exceeds 15 percent.