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Dividends get taxed immediately, so there is more pressure to reinvest profits in the company to find organic growth which is captured as capital gains instead.
by devman0 2y ago
Dividends get taxed immediately, so there is more pressure to reinvest profits in the company to find organic growth which is captured as capital gains instead. That reinvestment can take a lot of different forms like R&D, training, hiring, etc.
- positr0n 2y agoMakes sense, but weren't you just saying that the desire for constant growth/capital gains is a bad thing?