FYI: Taxable investors should prefer capital gains over dividends. Even qualified dividends (stocks must be held for at least 61 days around dividend ex-dates) are less tax efficient than long-term capital gains. That is so even when qualified dividends and long-term capital gains are taxed at the same rate, as they are today. Since capital gains can be deferred but dividend income is taxed when received, taxable investors should favor stocks whose returns come from capital gains rather than dividend payments.
Regards,
Ted
https://www.advisorperspectives.com/articles/2019/10/10/should-taxable-investors-shun-dividends
