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Fidelity Investments Canada ULC
About 17% of the 0.9% yield is recurring income; the rest is capital gains or return of capital. Too new to show a capital trend.
Payout over time
Fund health
The latest T3 filing breaks the taxable distribution into Canadian dividends, foreign income, interest, realized capital gains, and return of capital, each taxed differently.
About 10% of the latest taxable distribution is bond interest plus foreign income, taxed at ordinary-income rates. Eligible Canadian dividends get the dividend tax credit, and only half of capital gains are taxable.
That ordinary-income share is one source of tax drag in a non-registered account. The after-tax breakdown below models the combined effect by account type, alongside return of capital, foreign tax, and province.
Return and coverage
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 | 7% | $0.0560 |
| Foreign income | 10% | $0.0830 |
| Capital gains | 83% | $0.6558 |
Based on Fidelity Investments Canada ULC'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 0.9% 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.
Illustrative, not tax advice.
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Prices as of 2026-07-27. Distributions as of 2026-07-28. Tax character year 2025.
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