-
Brookfield Corporation Class A Limited Voting Shares (BN)
-
Brookfield Reinsurance Ltd. Class A Exchangeable Limited Voting Shares (BNRE)
Q: It just occurred to me, and I thought your members might be interested, that BNRE is a better choice than BN for those of us subject to clawback of benefits such as OAS. BNRE pays the same distribution as BN but it is a return of capital instead of a dividend. So there is no tax to pay in the year received and there is no gross-up of the distribution. In addition, BNRE is convertible at anytime into BN shares. Seems to me that many people should be switching to BNRE instead of BN.
5i Research Answer:
Thank you; this all makes sense. Distributions are expected to continue to be ROC, though if any are classed as dividends in future years BNRE states they will not be eligible dividends for the tax credit. Investors should also be aware that BNRE shares are much less liquid traders than BN shares.