Holding Period

A holding period is the length of time an investor is treated as owning an investment. Tax rules specify when the period begins, ends, or carries over.

A simple example

New shares bought through dividend reinvestment generally begin their own holding period after their purchase date.

Why this matters to income investors

Holding period can affect whether a gain is short term or long term and whether a dividend qualifies for preferential U.S. federal tax treatment.

How to use holding period in your research

Track acquisition dates by tax lot and consult current tax guidance for sales, gifts, reinvestments, wash sales, and qualified dividends.

This material is general education and information, not individualized investment, tax, or legal advice.