[bvrlt]

You pay taxes on dividends.

[mythz]

You pay more taxes on dividends, you still pay taxes on Capital gains, just less.

[imtringued]

In my opinion that is absolutely illogical because share prices can skyrocket even with weak fundamentals. Dividends should be taxed less because companies can't hype up their stocks to pay out a higher dividend (hype would actually decrease yields). Each dollar that is paid out as a dividend had to be earned by the company.

[jbverschoor]

In the US yes, other places, that's not the case

[sokoloff]

In the US, qualified dividends (which is most of them) are taxed at long-term capital gains rates.