Opinions
Fabrice Taylor
Enbridge Income Fund Holdings
ENF-T
COMMENT
May 08, 2018
$27.600
Stock price when the opinion was issued
oil
gas
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
You might be interested:
COMMENT
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.
oil
gas
COMMENT
The yield is 8%-plus. It is a drop-down vehicle for energy assets in Canada, not affected by the issues that Enbridge is facing in the United States. The payout ratio is reasonable. The parent company is struggling, and has the ability to force the dropdown firm to accept new assets, which can be a problem. There are procedures to protect shareholders, but it still makes him a bit nervous. There’s a lot of negativity toward pipelines, and toward Enbridge in particular, but he doesn’t think it applies to this one.