Tax-effective yield in a low interest and volatile environment

Alaris' dividend payments are designated "eligible dividends" for Canadian tax purposes. When an individual shareholder receives a dividend from a taxable Canadian corporation, a "grossed-up" percentage of that dividend must be included in the shareholders' income. The shareholder may then claim a credit in respect of the grossed-up dividend. Depending upon the shareholder's province of residence and applicable income tax bracket, eligible dividends are typically taxed favorably to non-eligible dividends: specifically, the amount of the gross-up percentage and offsetting dividend tax credit are higher for eligible dividends than for non-eligible dividends.