Alaris Equity Partners Income 6 25 Senior Unsecured Debentures T.AD.UN

Dividend increase almost certain!!

[OceanRanger1]

Dividend pre-covid was $.1375 monthly 
Quarterly equivalent $.4125

Dividends from corporations are paid out with after-tax dollars and have the dividend tax credit attached for stockholders.
 
Dividends paid out of an income trust are paid out with before tax dollars which is treated as a return of capital and has no dividend tax credit attached for unit-holders.

Alaris was paying dividends with after tax dollars prior to the conversion and now they payout the distributions with before tax dollars.

Tax burden has shifted to unit-holders.
No change if your holding is in a RRSP or TFSA but fully taxable in a cash account.

Payout ratio has hit the targets set by management for a distribution increase.

Distribution for the first quarter of 2021 will be almost certainly be increased from the current $.31 
I speculate somewhere between $.36 and $.41 per unit.

If management follows through on their stated dividend policy then it will be increased this quarter.

Purely speculation on my part but this management team is as solid as they come and has a history of following through with their stated intentions.

Long Alaris!!!
OceanRanger  :))

[TickerTwit]

I expect no dividend increase until there is some resolution of nCOV. And the notice given about partner redemptions also points to a delay.

[babedinkleman]

This post has been removed in accordance with Community Policy

[TickerTwit]

I think we're stuck waiting 8 weeks to see what we receive from AD.UN on our tax slips, unless the company announces something before then (which I suspect their lawyer would advise them to never do). I owned Bell Aliant before and after it was an income trust, and the income on either side of Jim Flaherty was predominantly 'other income':  74% in 2006 (before), 91% in 2007

[TickerTwit]

My apologies, I worded the second paragraph wrongly. Bell Canada split out Bell Aliant as an income trust, then Jim Flaherty announced that income trusts would lose their special tax status (because Bell was about to take all of itself into an income trust, and the conservatives realized many more corporations would follow), and Bell Aliant became a corporation. Later, Bell re-absorbed Bell Aliant