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Granite Real Estate Investment Trust (GRT.UN)
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Horizons S&P 500 Index ETF (HXS)
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Dream Industrial Real Estate Investment Trust (DIR.UN)
Q: My plan is delay OAS, at the same time trying to not go overboard on dividend-payers in my taxable account to limit the clawback. I'm wondering if adding REITs instead tend to help that situation.
Generally speaking, is the payout from Canadian REITs such as GRT.UN and DIR.UN in a form that is beneficial in that regard? Is there a CAD ETF that invests in the U.S. that might also be a good idea?
I hope this doesn't come across as tax advice.
Generally speaking, is the payout from Canadian REITs such as GRT.UN and DIR.UN in a form that is beneficial in that regard? Is there a CAD ETF that invests in the U.S. that might also be a good idea?
I hope this doesn't come across as tax advice.
5i Research Answer:
Last year, for GRT, 61% of income was considered foreign non-business income, 34% was other income and 5% was return of capital. For DIR.UN, 64% was ROC, 29% was foreign non business income and the balance other income. For investors looking for lower income for tax, DIR is certainly better, with a much higher percentage of ROC. An option for US investments is HXS, a total return fund on the S&P 500. It pays no distributions at all so does not impact current income (dividends are converted to cap gains through a derivative process).