Capital gains may be preferred by investors over dividends even if their tax rates are equal because:

Question

Quizplus · Accepted Answer

Taxes on capital gains can be timed, providing investors with greater flexibility and control over their tax liabilities. Dividends are typically paid out regularly and subject to immediate taxes, whereas investors can choose when to sell their investments and realize capital gains, allowing them to potentially optimize their tax strategy.

Capital Gains May Be Preferred by Investors Over Dividends Even