GREY:EBGUF - Post by User
Post by
pierrelebelon May 17, 2018 7:35pm
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Post# 28049602
Difference in Dividends ENF/ENB
Difference in Dividends ENF/ENB
To illustrate the difference, let's say you start with 1,000 shares of ENF, paying $2.26 yearly for an annual total of $2,260 (rounded)
The equivalent will be 703 shares of ENB paying $2.68 yearly or a total of $1,887 (rounded) annually.
The net annual difference is a loss of $373
Now, the exchange is made on the basis of ENF shareholders receiving 5% premium on the closing price yesterday. That works out to a gain of about $1,400 ($1.40 per share)
So, the capital gain (5% premium) makes up for over three and half years of dividend difference.
Not that great but, all in all, not that bad considering the dividend growth is expected to be the same for years to come.