Q: Following up on your recent answer re H&R distributions. You note that 58% of the return is "return of capital". I have always considered "return of capital" as giving me my own money back in the sense that it changes my adjusted cost base by the same amount so that I end up paying tax on it when I sell the shares. ie it is giving me my own money back because the company did not earn enough to fully cover the dividend and is therefore not a real earning.
Can you enlighten me on this? ie is "return of capital" really a benefit in the long run?
Thanks
Can you enlighten me on this? ie is "return of capital" really a benefit in the long run?
Thanks