Dividends aren’t free money — they’re usually taxable income. But how and when you own an investment that pays them can dramatically change the dividend tax rate you pay. There are many exceptions and unusual scenarios with special rules — see IRS Publication 550 for the details — but here’s generally how dividend tax works.
What is the dividend tax rate?
The tax rate on qualified dividends is 0%, 15% or 20%, depending on your taxable income and filing status. The tax rate on nonqualified dividends is the same as your regular income tax bracket.
https://www.nerdwallet.com/article/taxes/dividend-tax-rate
Just to clarify…I never suggested they were not taxable. I just said they weren’t capital gains.