RE:RE:RE:RE:Normal course issuer I can't say why you would choose AI over TD, that's your call, but I can make a few comments about the 3 publicly traded MICs I follow (AI, FC and TF) in general.
Pros
- MICs have a lot of equity, typically 50% of assets or more.
- MICs loans typically have quite modest loan to value ratios.
- MICs get even more conservative when times are tough so as to protect their asset base. They do this by tightening lending criteria and by borrowing less themselves.
- There is less competition for loans when times are bad.
- Stock yields vary, but are usually in the same range as the long term average TSX gain.
- They don't pay tax on earnings, so more of it gets passed on to you.
- Prices are low right now, which might provide an opportunity for a short term capital gain.
Cons
- There is more competition for loans when times are good.
- Since their dividends are taxed in your hands as interest, it might be better for you to hold them in a registered plan.
- Their ability to pay you a good return in the long run depends on their ability to protect assets during tough times.
- Since they pay out virtually 100% of their earnings, there's little room for long term capital appreciation.