income dividend

Income dividend

Any payout to mutual fund shareholders resulting from interest, dividends, or other income.

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Income Dividend

In mutual funds, a dividend distributed to shareholders that comes from the dividends or interest on the stocks or bonds represented in the mutual fund. It does not include income from the capital appreciation of the mutual funds. Income dividends are taxed as ordinary income at each shareholder's marginal tax bracket; they are not taxed as capital gains. See also: Capital gains distribution.

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income dividend

A distribution of dividends, interest, and short-term capital gains by an investment company to its shareholders. This type of dividend is taxed at the recipient's marginal rate. See also capital gains distribution.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.