Ordinary Dividends

Ordinary dividends are a type of dividend that is paid out to shareholders on a regular basis. They are typically paid out quarterly, but they can also be paid out monthly or annually. The amount of the ordinary dividend is determined by the company's board of directors, and it is based on the company's earnings.

Ordinary dividends are taxed at the same rate as personal income, which is currently 22% for most taxpayers. However, there are some exceptions to this rule. For example, qualified dividends are taxed at a lower rate of 15%.

Ordinary dividends are a good way for companies to return money to their shareholders. They can also be used to attract new investors and to reward existing shareholders. However, it is important to note that ordinary dividends are not tax-deductible for the company.

Here are some additional details about ordinary dividends:

* They are paid out of the company's profits.
* They are not tax-deductible for the company.
* They are taxed at the same rate as personal income.
* They can be used to attract new investors and to reward existing shareholders.

If you are considering investing in a company, it is important to understand how the company pays dividends. This information can be found in the company's annual report.