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Dividends are taxed the same as capital gains in the US. There can be value to deferring taxes, but $1 worth of capital gains via say a buyback is worth the sam
by ac29 5y ago
Dividends are taxed the same as capital gains in the US. There can be value to deferring taxes, but $1 worth of capital gains via say a buyback is worth the same as $1 paid out in dividends, net of taxes.
- dentalperson 5y agoA buyback does not trigger a taxable event, unlike a dividend. So the tax deferred value of buybacks is compounded over the years, which can be significant.