Capital gains may be preferred by investors over dividends even if dividends and capital gains are taxed at the same rate because:

Question

Quizplus · Accepted Answer

One advantage of capital gains over dividends is that taxes on capital gains can be timed. Investors can choose when to sell the asset that has appreciated in value, which allows them to defer the tax liability until a later date. This can be beneficial for investors who may be in a lower tax bracket in the future or who have other offsetting capital losses to reduce their tax liability.

Capital Gains May Be Preferred by Investors Over Dividends Even