Enbridge Income Fund HoldingsENF.TOCOMMENTDec 06, 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.
He owns the parent Enbridge (ENB-T) instead. This one is an income fund, giving a higher yield, but less growth. Enbridge (ENB-T) basically drops down mature assets into this fund and LOPs. It’s a financing tool. Dividend yield is north of 7%, and is sustainable.