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Also, dividends are taxed as ordinary income whereas stock buybacks lead to capital gains, which almost always have a lower tax rate.
by bobbylarrybobby 2y ago
Also, dividends are taxed as ordinary income whereas stock buybacks lead to capital gains, which almost always have a lower tax rate.
- e_y_ 2y agoQualified dividends are taxed at the same rate as long term capital gains, although the rules for what qualifies can be tricky (special one-time dividends in particular).
- HDThoreaun 2y agoOnly if youve held the stock for less than 6 months. Most dividends are taxed at capital gains rate.
- creativeSlumber 2y agobut there is no guarantee of a stock buyback increasing the stock price by x%, correct?