Alaris Royalty Corp ALARF

Getting pretty intriguing...

[constructionsite]

now that it is yielding around 10%, based on proposed new dividend of 0.31 quarterly. 

Given the expected loss of divi tax credit assuming the conversion goes through, however, this one might be better in registered accounts.

[Rakaposhi]

My RBC account already shows the new distribution per unit. So I guess it's a done deal. Unfortunately, those of us who've held this for years are now screwed because we either pay the tax on the dividend or cut our losses which can be substantial.

[mickeymouse]

If you are in Canada and hold this in a TFSA or RRSP the increase in distribution will be a benefit as you can't claim a dividend tax credit in registered accounts anyways.  In a non - registered account there will be a return of capital component to the distribution - this will reduce your adjusted cost base on your equity - when you sell your units this will increase your capital gain

[CanSiamCyp]

This post has been removed in accordance with Community Policy

[Rakaposhi]

Thanks Can and Mouse for that. Indeed, I can deal with the tax issues later. At the moment, I am sitting at a 40.91% capital loss on AD. I'll have RBC adjust the book value when the deal is through on Sep 4th so as to maintain the tax loss on the T5008 when I sell them. Cheers

[CanSiamCyp]

This post has been removed in accordance with Community Policy

[Rakaposhi]

Ok, let's hope for the best. I sure don't want to lose the capital loss on this one.