Enbridge Inc T.ENB.PR.D

Enb.pr.h

[ANALOG GUY]

Anybody else own these? 

cummulative redeemable preferreds 

just reset for another 5 years 

now yielding approximately 9%

seems like a decent holding for income seekers 

Fun Fact, Enbridge is the biggest dividend payer in Canada, over $7 billion per year paid out

[Experienced]

Interesting option. There are pros and cons depending on one's tolerance to risk and investment objectives. If you see an impending recession and like ENB then it would make sense to hold the preferreds instead of the commons and then switch back to the commons as the SP of the commons go down in a recession since the preferreds react more to interest rates and they are near their peak for

[rickkulesza]

Enb.pr.f is a way better buy, 1.30 cheaper and resets 10 cents a year higher , that's another 1.3, so I value it at 2.60 cheaper, less the 5 year dividends that h will pay you over 5 years....  extra 80 cents so net f is 1.80 cheaper.  simple math, but the " current " rate fools people 

[Experienced]

Not sure where you are getting your infornation. Here is the PR from last May regarding the conversion of the Fs to Gs https://www.prnewswire.com/news-releases/enbridge-provides-notice-of-series-f-preferred-shares-conversion-right-and-announces-reset-dividend-rates-301813849.html

[rickkulesza]

What part do you think is wrong, then I will comment  thx

[Experienced]

If I read your post correctly you say the dividend increases by 10 cents a year.  Where are you getting that info? On TD when I ask for a quote for that preferred it gives me an error message that it is an invalid symbol.  Seems to me that that preferred was converted to another as per the PR posted.

[Experienced]

wierd..just plugged it in and i got it.  this morning i kept getting an error messge

[rickkulesza]

No, reset rate 2.51 vs 2.12 percent, that's 10. Cents EVERY YEAR. Enb.pr.f 

[rickkulesza]

Get a new broker !  Lol

[rickkulesza]

   Enbridge Inc Pref Share ENB.PR.F   StockXTSE   Summary Chart News Price vs Fair Value Sustainability Trailing Returns Financials Valuation Operating Performance Dividends

[Experienced]

If you look at any basic time time period for SP....YTD; 1 year, 3 year; 5 year - H outperforms F.  So on a total return basis your thesis doesn't work.

[rickkulesza]

Lol, I thought f did not exist ? Anyways your research is sound, your thesis was f did not exist ?  Past performance for a basically similar product means f  will most likely have a better return in the next 4-5 Years, I roteded  from other other Enbridge preferred shares and purges this one, do the math, f is lagging, so I bought in at about 14.9, 1 month ago, I expect to sell at

[Experienced]

Dunno Looking at a one month chart to yesterdays close - H - +6.7 F - +6.2 Plus you have transaction costs. Either way seems a lot of work for not much difference.  Me? I would rather spend that amount of time on things that generate larger returns.  So will stick with my buys of H yesterday and sell to buy commons if the SP of ENB tanks in the recession I am predicting. But hey

[rickkulesza]

Past history,  today, h is down  .8 percent f .3 i play forward, f rested at 2.51,  h2.12,  yet h is worth more ,  not a chance it's basic math  but good luck too,  on 700k it's a decent difference, , and it's 4.99 a trade .. peanuts

[rickkulesza]

H... (.21) f... ( .02)

[rickkulesza]

Another net 10 cents 29, but who's counting

[Experienced]

Looks you are counting...lol Me?...nope But hey....you've proven you are smarter than an old grizzled Ex Street Vet - kudos....looks like you missed your calling in life...lol

[rickkulesza]

I'm trying to illustrate they are the same product, with small differences, therefor f is way cheaper, thus but it, performce is nonsense , you don't compare the same product this way,  do you know how resets work !?  You seemed confused that f will pay 10 cents more based on its reset rate  anyways good luck, 

[Experienced]

With all due respect, i think you need to read the prospectus for the F series. Having worked as a financial advisor for many years, I am not new to how resets work.  The F series dividend was reset this year for the next 5 years.  The actual quarterly dividend for the Fs is 3 cents less than the Hs.  But what is more important is that subject to some daily fluctuations, the yield

[rickkulesza]

Lol, 2-3 percent on 700 k..... worth it  big financial analyst, prospectus lol big word, the prospectus for both is the same ! net present value is the only difference, do your homework F will reset 10 cents higher.... on average.. in the future , 2.51vs 2.12 .. it's easy math   

[rickkulesza]

Holders that don't convert retain f, I own thousands