Ordinary Dividend

Ordinary Dividend

1. In the United States, any dividend that is subject to income tax rather than (lower) capital gains tax. An ordinary dividend occurs if the security from which the dividend derives has not been held for at least 61 days during a certain 121-day period (for common stock) or for at least 90 days during a corresponding 181-day period. See also: Qualified dividend.

2. Any dividend that a company pays on a regular basis most of the time. See also: Special dividend