In Canada, stock repurchases may be preferred to cash dividends due to the favourable tax treatment of capital gains relative to dividend income.

Name: In Canada, stock repurchases may be preferred to cash dividends due to the favourable tax treatment of capital gains relative to dividend income.
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In Canada, capital gains are taxed at a lower rate than dividend income, so stock repurchases may be preferred over cash dividends as they can result in higher returns for investors.

In Canada, Stock Repurchases May Be Preferred to Cash Dividends