Enbridge Income Fund HoldingsENF.TOCOMMENTJul 24, 2015Stock price when the opinion was issued
As of Nov 10, 2018. Market Open.
Enbridge wants to buy ENF to simplify their corporate structure. In the States, Enbridge offered a small premium, while in Canada, they offered a premium. He suspects the directors of ENF-T are waiting for a higher premium (or that's what he would do). Pays a higher yield than Enbridge Inc. but lacks the dividend growth potential.
There will definitely be more shares issued, but the company has backstopped those needs out to around 2020, and he thinks they will be very careful about putting out deals that will be well received. If looking for yield and stable, more contracted assets, this is a reasonable option. Dividend yield of 4.6%.