Qualified Dividend

So I always see people posting about how buybacks have the tax benefit of using capital gains vs dividends being taxed as income but I am always confused by this as if you hold the position for longer than a year the dividend is most likely considered qualified and would also be taxed at the capital gains rate, thus the only difference would be the timing of the taxation, not the amount correct?

Essentially. The benefit is not paying taxes until you actually sell the position, allowing for higher gains compared to paying taxes at each dividend issuance. Level 3 exam has 4 or 5 comparative scenarios w/ these type of tax rules to show the overall benefit of deferred taxation.

Ok cool was just curious about that in general, nice to see it’ll be in L3. I get annoyed when everyone talks about the benefit like its this huge 35% vs 15%/ ordinary income vs cap gains difference when its really just a timing issue that can allow for more gains.