Enbridge Inc T.ENB

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Surprise dividend increase?

[NPCexe]

Which one is that, TT?

TickerTwit wrote: I'm aware of ENS and gave it some lengthy thought not long ago. The split-corps can be very rewarding if you catch the underlying market at a good time; my son and I have used them to 'speed things up' now and then. This sounds ghoulish, but COVID was an opportunity to buy into certain split-corps at sizable discounts on NAV. Rather than ENS (which I think has done well), we chose another that had a basket of underlying stocks instead of a single stock.

.

Marner16 wrote: TT:

I can't disagree with your investment goals because they are your investment goals.

I have a suggestion that may enhance your income without changing your underlying ENB investment if you haven't investigated it already.

As an alternative to ENB which currently yields 6.66%, you might want to check out ENS.TO (E Split Corp.) which currently yields 10.89%

The Split shares have their pros and cons like anything else.  The pros include a monthly income stream as they pay out $0.13 per share.  If you believe in the underlying security (ENB in this case), the Splits provide greater leverage that holding the underlying security.

On the downside, the splits depend upon growth of the underlying security.  If the NAV of the Split drops below $5 per share, the monthly payouts get suspended until the NAV moves back up above $5.  As such, Splits can be a poor investment if the underlying security is weak.

In the case of ENS.T, the current NAV of the Split is about $14.50 so there is a huge buffer between the current NAV and $5. 

I tucked some ENS into my TFSA at about $10.50 per share a few months ago.  Since then, I have collected the 15% montly payout tax free. Since my purchase of ENS, the share price has increased by about $5 while the share price of ENB itself has increased about $10, which gives you an idea of the leverage.

I'm not suggesting that anyone buy shares of ENS.  I just think that it is just good to know what the alternatives are so that each of us can decide for ourselves.