Enbridge Income Fund HoldingsENF.TOCOMMENTJan 23, 2018Stock 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.
Change from Enbridge Inc. to this? His preference has always been for Enbridge Inc. than the income fund. The income fund has an attractive yield, but management's focus is on Enbridge Inc. They have an objective to increase dividends over the next few years at a rate of about 10%, and he can't see why they shouldn't be able to accomplish that. None of the pipelines look cheap from a statistical point of view, but this company's management has done extremely well within the industry. He would prefer Enbridge Inc. to this.