Because capital gains are not taxed,most investors discourage the distribution of dividends.

Name: Because capital gains are not taxed,most investors discourage the distribution of dividends.
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Capital gains are subject to tax, although they may be taxed at a lower rate than other forms of income. Investors may still prefer dividends as a source of income because they provide a more predictable cash flow and can be reinvested.

Because Capital Gains Are Not Taxed,most Investors Discourage the Distribution