Enbridge Income Fund HoldingsENF.TOHOLDJun 20, 2017Stock 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.
We have entered into an oil bear market. Pipeline stocks had done pretty well and for the last 2 years they’ve been underperforming. This has a dividend yield of 6.4%, and believes they have the ability to increase that dividend a little, gradually. Infrastructure is still needed if Canada is going to move its oil. The main line, which runs from the oil fields to the US border, is being replaced which will give this company a pretty good boost as they get to mark up their capital base to the cost of replacing that pipeline. Has a nice yield and there is probably a little increase coming. 6.35% dividend yield.