This summary was created by AI, based on 2 opinions in the last 12 months.
The experts have mixed opinions about Horizons Enhanced Income Energy ETF (ENCC-T). One expert believes that the high dividend of around 14% is hard to maintain and would not recommend it for the long term, while another expert is bullish on energy and considers it a good long term hold. Both experts agree that the high dividend yield carries some level of risk. The short-term outlook for energy is positive, with expectations of strength in oil prices around $70. Overall, the stock is seen as a good short-term option but not recommended for the long term.
Bullish on energy.
Good long term hold.
High dividend yield that can be risky (13%).
Buy, hold or sell? Liked it till recently. Have difficulty seeing any upside with the oil price in Canada. Normally he would say buy it, now he would say look at the US.
This depends on your view of energy. It has a very nice yield. If he wants an energy play and wants to be conservative, he would definitely buy this. In most cases, when he is dealing with a commodity like this, he prefers it to be unhedged with a covered call. On anything that is of a riskier commodity nature, he wants to have the full growth.
With the acquisition of COS-T, covered calls won’t benefit after a certain debt. The takeover will probably not benefit an ETF with a covered call.
Not sure how safe the dividends are. They have inexpensive ETFs based on swaps. He is not concerned that it is derivative-based. It is currency hedged.
An ETF of energy stocks and “covered calls” are written on all the positions. Understand what covered calls are all about. Hypothetically you have stock trading at $28 and you write a covered call option for $30 which will bring in $0.40. The cost is now $27.60 but if the price now goes to $30, then you are obligated to sell. If the stock goes to $35, $40, too bad, you have to sell at $30. Covered calls work wonderful in ranging markets. If you think things are going higher, you don’t want to do covered calls.
A BMO ZEO with no covered call it yields 3.2 but HEE-T gets it up to 6 or 7% with the covered call strategy. If you think the energy sector is going up over the next year or two, then go with ZEO, otherwise go with HEE, which he thinks may be better for now.
Horizons Enhanced Income Energy ETF is a Canadian stock, trading under the symbol ENCC-T on the Toronto Stock Exchange (ENCC-CT). It is usually referred to as TSX:ENCC or ENCC-T
In the last year, 2 stock analysts published opinions about ENCC-T. 0 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Horizons Enhanced Income Energy ETF.
Horizons Enhanced Income Energy ETF was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for Horizons Enhanced Income Energy ETF.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
2 stock analysts on Stockchase covered Horizons Enhanced Income Energy ETF In the last year. It is a trending stock that is worth watching.
On 2024-03-28, Horizons Enhanced Income Energy ETF (ENCC-T) stock closed at a price of $11.35.
Dividend (~14%) hard to maintain. In short run, energy a good trade. Expecting strength in oil prices (~$70). Would not recommend for the long term, but good short term option.