SCHD investors have a lot of questions about dividend taxes, and it doesn't need to be so complicated. We explain in simple terms how qualified vs non qualified dividends are taxed with examples provided by someone else who did the heavy lifting. Does $SCHD offer qualified or non qualified dividends? To answer that question we need to look at the underlying index for SCHD which in fact makes it a point to exclude REITs which are the most common asset dividend growth investors will come across that falls into the nonqualified dividend bucket. Why are qualified dividends preferred? It's because they receive more favorable tax treatment. Want to understand what that looks like? Just watch the video as we walk you through - using simple examples - the two types of taxation methods used for qualified and non qualified dividends (ordinary income taxation and capital gains taxation). This is a must watch video for anyone confused about dividend taxation, for SCHD and other dividend stocks and ETFs, and looking for a simple guide.

RESEARCH PIECES USED IN THIS VIDEO:
1. Is SCHD the Best Dividend ETF?
   • Is SCHD the Best Dividend ETF?  
2. Judging the Two Biggest Dividend ETFs
   • Judging the Two Biggest Dividend ETFs  
3. The Impact of Taxes on Dividends and Gains
https://www.nanalyze.com/2023/11/taxe...
4. Quantigence – A Dividend Growth Investing Strategy
https://www.nanalyze.com/dividend-gro...

CHAPTERS:
00:33 The best advice we can give you
02:39 The complex taboo topic of taxes
03:37 Preconceived notions about dividend taxes
04:41 How ordinary income is taxed
06:19 How capital gains tax works
07:38 Don't forget state taxes
08:41 Qualified vs nonqualified dividends
10:48 Is SCHD qualified dividends or not?
12:13 Explaining your 1099-DIV statement
13:15 SCHD and dividend growth taxation
15:43 401Ks, IRAs, and Roth IRAs
17:14 Summarizing our findings


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