One can look at the payment of a dividend as a statement by management (officers and directors) that they have no better use for your capital than to give it back to you in the form of fully-taxable income, first at the corporate level and then again at the individual level. Ouch!!! Don't get me wrong: even Warren Buffett likes dividend-paying stocks -- but he knows what to do with the cash he receives. Is one better off selling appreciated stocks at capital gains rates or getting dividends taxable as ordinary income? Hopefully, Jason will post something soon on this choice.