preston on Nostr: Dividends first are double taxed to the shareholder. First, the company pays tax when ...

Dividends first are double taxed to the shareholder. First, the company pays tax when the dividend is distributed, and then once the share holder receives the funds, they are taxed on the dividend income. Next, the company is reducing its future agility to weather adversity. Once that “potential energy” is sent out the door, it’s gone forever and the company needs to either borrow or retain more earnings in the future to posses this “potential energy”.