Art likes to invest his spare cash in the stock market. In the past, he has focused on growth stocks and long-term value, to take advantage of the preferential tax rate on long-term capital gains. He recently learned that this rate is also available for dividend income. However, he is confused by his brokerage statement, which lists both qualifying dividends and non-qualifying dividends. For Art’s benefit, investigate the requirements under which dividends qualify for the preferential tax rate. Write a letter to Art communicating the results of your research.