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0 pointsbobbylarrybobby2y ago0 comments

Also, dividends are taxed as ordinary income whereas stock buybacks lead to capital gains, which almost always have a lower tax rate.

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e_y_2y ago

Qualified dividends are taxed at the same rate as long term capital gains, although the rules for what qualifies can be tricky (special one-time dividends in particular).

HDThoreaun2y ago

Only if youve held the stock for less than 6 months. Most dividends are taxed at capital gains rate.

creativeSlumber2y ago

but there is no guarantee of a stock buyback increasing the stock price by x%, correct?

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