I'm afraid you might be wrong still. Both long term capital gains and qualified dividends go up to 20% tax rate when you are in the 39.6% income tax bracket. barfo
It's always better to defer tax payments. With dividends, even qualified dividends, you pay each year. You'll have a higher sum if you only pay once at the end. This is all assuming a non-tax-advantaged account. In a 401k, for example, it doesn't matter.
That's also assuming you don't need the income now. It's also assuming that your tax rate won't be higher later. So I'm not sure I'd say 'always'. Maybe 'often'. barfo
I know but I meant not only taxes on stocks ect but in general. I live in the eternally corrupt state of Hellinois and these greedy SOB have a 5% state income tax that doesn't care about qualified dividend or long term capital gains. You pay 5% no matter what to this bankrupt state.