Skip to content
DividendsCanada
← Tools

A yield, taken apart.

The number on the fact sheet is not the number that reaches you, and the gap is not where most people think. One thing has already been taken and is invisible; one has not been taken yet and is the biggest single item; one is not a cost at all and only looks like income.

The position 2026 rates
Fund · 10 with tax data
Held in
Province
Per year
What reaches you
As a yield on what you put in

Trailing yield as at 2026-08-10, tax characteristics from the last published year, 2026 marginal rates for the bracket your income falls in. A distribution can be cut at any time and its character changes year to year, so this describes what a position like this has been doing rather than what it will do. Not tax advice — see the disclaimer and the CRA's own figures.

The three that catch people out

The fee is already gone

Distributions are paid out of the fund's assets after the management fee has been charged, so the published yield is net of it. Subtracting the fee from the yield counts it twice. That does not make it free — it means the damage was done before you saw the number.

Foreign tax never arrived

Where a fund holds foreign companies, tax is withheld at source before the money reaches the fund. It shows in the tax breakdown as a negative line and it is already out of the total. In a taxable account a credit may recover it; inside a TFSA nothing does.

Return of capital is not income

It is your own money coming back. No tax is due on it now, which flatters every after-tax figure on this page — and it lowers your cost base by the same amount, so it returns as a capital gain when you sell.

Fund data as at 2026-08-10. Rates and limits carry their own source and retrieval date.