You can invest the qualified dividends in a qualified opportunity fund, but that investment will not be eligible for opportunity zone benefits. While qualified dividends are taxable at long-term capital gains rates, they do not constitute capital gains.
To obtain the benefits included and related to the opportunity zones, taxable capital gains must be invested in Qualified Opportunity Funds. Qualifying dividends, although taxed at capital gains rates, are not qualifying capital gains. Nevertheless, you could invest them in a QOF, but will not receive the deferral or exclusion benefits.
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