DIVIDEND RECEIVED DEDUCTION
dividend received deduction: translation
dividend received deduction ( DRD)
Federal tax law allows a C corporation investing in the stock of other corporations to take a tax deduction for the dividend income received from other corporations. This tax treatment applies to dividends from preferred and convertible preferred stock in addition to common stock. The deduction is usually, but not always, 70 percent of the dividend amount received. American Banker Glossary