Music Royalties Inc. Pays 74th Dividend or Distribution for a Cumulative 18.4 cents and $15 million since 2019
- Music Royalties Inc.
- Mar 31
- 2 min read
March 31, 2026, Toronto, Canada. Music Royalties Inc. (‘MRI’) is pleased to announce the payment of its 74th dividend representing a cumulative $0.184 per share in dividends and over $15 million paid to shareholders since 2019. The cumulative 18.4 cents in dividends represents a 123% return on capital for initial shareholders who invested at $0.15 per share, a 46% return in dividends for $0.40 per share investors and up to a 37% return in dividends for $0.50 per share investors, before capital gains. New investors at $0.50 per share receive $0.036 in distributions per year for a starting 7.2% after tax yield.
MRI’s yield is 3x the S&P/TSX 60 dividend yield of 2.4% and 6x the S&P 500 dividend yield of 1.2%.
T5 slips were mailed in February and 50% of the distributions made in 2025 were taxable and benefitted from a dividend tax credit. As of July 1, 2025 MRI declared all future distributions to be a ‘Return of Capital’ (‘ROC’) which are not taxed in the year they are received as they are characterized as a return of the initial investment rather than dividend income. ROC distributions reduce the adjusted cost base (‘ACB’) of the investment in MRI shares, which in effect converts the ROC distributions into capital gains when the investment is eventually sold. Tax Implications:
No immediate tax: ROC distributions are not taxed as income in the year they are received.
Reduced ACB: The amount of ROC received reduces the ACB of your investment.
Impact on capital gains/losses: When you sell the investment, the reduced ACB will result in a larger capital gain (or a smaller capital loss).
Potential for taxable capital gains: If the ROC reduces the ACB below zero, the excess is treated as a capital gain in the year it reduces the ACB to zero or below.
“The declaration of distributions as ROC effectively converts the current 7.2% yield to an equivalent 14% pre-tax yield for both existing and new investors who pay tax at the maximum Canadian rate. Non-resident shareholders avoid the withholding tax in the short term. This cash flow strategy benefits all MRI investors and it is important that all shareholders seek their own tax advice and keep track of their ACB”, stated Tim Gallagher, CEO.
About Music Royalties Inc.
Music Royalties Inc. is an artist, music fan and investor virtual partnership which provides direct exposure to music revenues from global streaming platforms by acquiring royalties for shareholders. MRI has increased share value by accretively acquiring a diversified portfolio of 31 cash flowing royalties from over 7,000 songs and paid out over $15 million in dividends since 2019.
Contact
Tim Gallagher Connor Gallagher Andrew Robertson
CEO Investor Relations Director
+1 416-925-0090 +1 647-921-2206 +1 416-317-0137
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