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If you choose to receive stock over dividends, do you pay less tax?
Dividends are taxed fully but capital gains are taxed at 50%
I.E. you can choose to receive $20 dividend or $20 of stock.
If you choose to receive the shares, your adjusted cost base will stay the same. When you sell your shares, your proceeds will be higher by $20 but you only have to pay tax on $10.
Does that make sense or do I not know my tax rules?
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