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Hamilton
16.1% headline yield, and 90% of it is classified as return of capital. Paying out more than the income the fund earned is how a covered-call or leveraged wrapper works: the distribution can include option premium or realized gains that receive ROC tax treatment.
Payout over time
Fund health
This fund sells call options on its holdings to help fund its distribution. That can limit how much upside it keeps when its holdings rise, in exchange for the cash it pays out.
Why the price moved
No comparable plain-basket twin is mapped for this fund, so a benchmark price comparison is not shown.
Own payout record
Cash distributed per unit, by calendar year, from the fund's own distribution history (up to the last 6 years). "Reduced" marks a year where the cash paid per unit fell more than 5% versus the prior year.
How it's taxed
The CRA taxes each distribution dollar by its character. These shares are measured against the full taxable distribution, including any portion the fund reinvested as units rather than paying in cash.
| Character | % of taxable | $ / unit |
|---|---|---|
| Eligible dividends | 3% | $0.0516 |
| Capital gains | 8% | $0.1573 |
| Return of capital | 90% | $1.7880 |
For a covered-call or leveraged fund, return of capital can include option premium or realized gains classified as ROC for tax purposes, not your capital handed back. It still lowers your cost base, so the deferred tax can increase a later capital gain or reduce a later capital loss when you sell. If return of capital keeps building up and your cost base reaches zero, any further return of capital is taxed as a capital gain in the year you receive it, not deferred to a sale.
Recent dividend activity in holdings
What Premium adds
Next steps
Prices as of 2026-07-27. Distributions as of 2026-07-28. Tax character year 2025.
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Based on Hamilton's 2025 T3 / tax-factor filing. Character can vary year to year. This is not tax advice; consult a tax professional about your situation.
What you keep, in your account
Each figure below starts from the headline yield of 16.1% and shows an estimate of what you keep after tax. Where you hold the fund changes the answer: a TFSA shelters Canadian tax and can still lose foreign withholding tax when the fund has foreign withholding, a non-registered account taxes each character at its own rate, and an RRSP defers tax until you withdraw.
These figures are estimates at the top ON marginal tax rate, not your personal rate. The return-of-capital portion is not taxed now: it lowers your cost base, so more of your eventual sale is taxed as a capital gain instead.
Illustrative, not tax advice.