4 ms·
Dividends are taxed at the same rate as capital gains, so it should make little difference to a shareholder if a company paid him 1000 dollars or raised the res
by YokoZar 13y ago
Dividends are taxed at the same rate as capital gains, so it should make little difference to a shareholder if a company paid him 1000 dollars or raised the resale value of his stock by 1000 dollars.
- Retric 13y agoNo, because your forced to pay capital gains early thus having less money to compound. Try simulating it with 10% growth vs 5% dividend (which is used to buy the same stock) and 5% growth for 10 years.
- Maven911 13y agoI meant in terms of the corporation, buyback vs dividends, buyback will have a greater impact because of the tax factor