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You wrote, Dividends from qualified corporations stock are allowed the preferred capital gains rate if they are held at least 61 days. (91 days for true preferred stock if more than one year's accrual are paid in one dividend.) It should be noted that must so-called preferred securities are "Hybrid" debt instruments, not qualifying regardless of holding period.

For the curious, the preferred stock WPatch is talking about that do not qualify are typically issued by an investment trust, such as a REIT (Real Estate Investment Trust) or bank-owned financing arm. The investment trust is a pass-through entity, so the payments are effectively interest on the assets held by the trust. That's why they don't enjoy favorable tax treatment - you're paying the income taxes the trust doesn't pay.

- Joel
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