Ask a Fool: How Are My Dividends Taxed?

The short answer? It depends.

The rate at which dividends are taxed hinges on two main factors: your marginal tax bracket and whether the dividend is "qualified" or not.

To be qualified, a dividend needs to meet two basic requirements. First, it must be paid by a U.S. corporation or a foreign corporation traded on a major U.S. stock exchange. Second, you must have owned the stock for more than 60 days in the 121-day period staring 60 days prior to the ex-dividend date.

Source: Fool.com