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You don't actually want them to start giving out a dividend, capital gains have a favourable taxation compared to dividends so as long as their profits can be r
by belval 5y ago
You don't actually want them to start giving out a dividend, capital gains have a favourable taxation compared to dividends so as long as their profits can be reinvested and turned into growth investors will prefer that.
- sokoloff 5y agoQualified dividends* are taxed the same as realized long-term capital gains in the US. * - which are most dividends paid by US entities that are not REITs or MLPs and paid to holders who care to optimize their taxes.