Enbridge Income Fund HoldingsENF.TOCOMMENTNov 30, 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.
This now owns all the primary assets of Enbridge (ENB-T). From that perspective he likes it. This company is following the same playbook that Enbridge followed to great success; keep raising the dividend, have good shareholder relations, communicate your story, execute on your plan and your stock will go up. There are going to be huge financial needs that this company is going to have to do. They will be coming back to shareholders over and over and over again.