Kirkland | | 374 posts since 2014That money market fund is probably interest, certainly not qualified dividends. Yes it is true though that qualified dividends are more valuable than CD interest because you get long term capital gain treatment on all qualified dividends, which almost all are qualified if you hold them for the holding period in your stock portfolio. In fact, if you are like me, not earning much in total income, retired, not yet collecting pensions, not yet collecting social security, then you can actually pay 0% rate on all those qualified dividends up to like 42k, single filer, if your total adjusted income is under 42k. CD interest is taxed at ordinary rates (higher than 0%), so yes buy stocks that pay a good reliable dividend yield and those dividends (qualified) are worth more than the CD interest income. If you are single and your total adjusted income is higher than 42k up to like $445k, then you pay 15% tax on those qualified dividends, ie much lower than you would pay in ordinary rates on your wages and CD interest
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