My point is not based only on the different tax rates applied to capital gains vs. dividends (though that's usually the case), but rather that if you receive dividends (whether you spend or reinvest them) from shares held in a taxable account, you will pay taxes on those dividends by the following April.

If, on the other hand, your shares appreciate due to buybacks, that appreciation will not be taxed at all (even at beneficial capital gains rates) until you sell those shares. And if you never sell them and leave them to your kids, they will benefit from a "basis step-up" that resets their basis to their value when you passed away rather than when you bought them.