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Pros and cons of paying out cash dividends

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What are alternative ways in which investors can receive a cash return from their investment in the equity of a company? From a tax standpoint, which of these would be preferred, assuming that investors pay a 35 percent tax rate on dividends and a 15 percent tax rate on capital gains? What if investors faced the same 15 percent tax on income and capital gains? What are the pros and cons of paying out cash dividends?

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Response provides pros and cons of paying out cash dividends

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equity of a company? From a tax standpoint, which of these would be preferred, assuming that investors pay a 35 percent tax rate on dividends and a 15 percent tax rate on capital gains? What if investors faced the same 15 percent tax on income and capital gains? What are the pros and cons of paying out cash dividends?

What are alternative ways in ...

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