RE:Div classified as Interest income ....why ? That's why the yield is so high.
The company earns income, pays no taxes, passes it on to shareholders to pay the tax at their personal tax rate.
For dividends, the company pays tax, then pays you what's left over. That's why you get a dividend tax credit, to compensate for the tax already paid.
This is why distributions that are taxed as income are so good for registered accounts (RRSP, TFSA), because no tax has been paid. When you receive a dividend in your RRSP or TFSA, the company already paid some tax and you don't get a tax credt.