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 by choosing when to sell the asset, whereas taxes on dividends are typically paid out annually regardless of when the investor chooses to sell the asset. This provides greater flexibility and control over the timing of taxes, which can be advantageous for investors.

Capital Gains May Be Preferred by Investors Over Dividends Even