On October 8, Boston Pizza Royalties Income Fund declared their September distribution. The ticker symbol of Boston Pizza Royalties Fund is BPF.UN. In this annoucement, the fund is raising the distribution from $0.065 per unit to $0.085 per unit monthly. This is an increase of 30.8%.
During the start of the COVID19 pandemic, Boston Pizza suspended their distribution as most of their restaurants were forced to close for in-person dining. Later as more COVID19 restrictions became less severe, the restaurants could be opened at reduced capacity. The distribution was re-started at $0.065 per unit per month, which was down from the $0.102 per unit per month prior to the distribution suspension.
Boston Pizza Restaurants are separated into a lounge/sports bar and a normal sit down restaurant. The restaurants pay a royalty of 7% of gross sales to Boston Pizza, with 5.5% going directly to the fund and 1.5% going to Boston Pizza International directly. The restaurants do not pay royalties on liquor sales.
I owned 257 units of Boston Pizza Royalties Fund inside my TFSA. This increase adds $61.68 to my annual dividend income.
The September distribution will be paid on October 29, 2021 to unitholders of record at the end of day on October 21.
Disclosure: Long BPF.UN
Note: For non-registered accounts, the tax treatment of the distributions involve tax-deferred portion return of capital and a taxable portion that is treated as an eligible dividend from a Canadian corporation.
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