Enbridge Inc T.ENB

Fiddy Basis Point Interest Rate Hike Coming This Week

[FiddyFiddyOddzz]

How will this week's large interest rate hike affect ENB stock price ? 

 What will the rate hike do to the share prices of the banking stocks ?  Will ENB stutter, while the likes of BNS & TD surge after the rate hike announcement ??

[Quintessential1]

Not when ENB is yielding a full 1.25% plus over BNS.  Even more over TD.   You and I both own BNS and safe as it is I believe in this current environment ENB is safer. Unlike banks there is no risk of loan and mortgage defaults.  There is certainly no risk of shutdowns. The oil addicted markets need their fix and ENB is the market's syringe. Speedy, safe, cost efficient

[robert41]

Everyone knows the half point bank rate hike this week is coming it's old news as is the further hikes. Fundamentals seem to be in the banks and enb's favour. Banks have been tightening their lending policies for a year now so I don't see risks of defaults. Anyway we are all guessing but banks and the likes of Enb and other energy producers that are piling up the cash should be ok

[FiddyFiddyOddzz]

And let's not forget the ex-div date is coming up in another few weeks.  Should we expect the usual beat down of a couple of dollars a share after the ex-div date ? Quin wrote:"Not when ENB is yielding a full 1.25% plus over BNS.  Even more over TD.   You and I both own BNS and safe as it is I believe in this current environment ENB is safer. Unlike banks there is

[Quintessential1]

Well it didn't drop last ex-div date so I would not bet on it and by bet I mean trade around it.  There are a few that sold $55 CAD and lower that are  still on the outside looking in. Trading at 52 week highs with full pipes and a rising demand that the SPR is having trouble suppressing.  I will take my chances with steady eddy Enbridge here. Go Enbridge! ;-)

[FiddyFiddyOddzz]

I just checked the historical prices on Yahoo.  On Feb 11th ENB closed at 55.56, on the 14th (ex-div date), it closed at 52.79, and stayed in the 52's until Feb 24th when it closed at 53.13. Had one traded around the ex-div in Feb, they coulda definitely made 2 or 3 bucks a share on the gamble. Quin wrote:"Well it didn't drop last ex-div date so I would not bet on it and by bet

[SargeX]

Yup, that's the way it went down once again. I had actually predicted that it wouldn't happen last time but it sure did. I'm now convinced that there is some automated trading causing this. It really is absurd as it is way better to sell before ex-div date than on ex-deiv date so all the traders selling on ex-dvi date really have it wrong. As usual, we won't be selling any of our

[Quintessential1]

So that is a net of $2.77 CAD.  Subtract the $.086 for the div payment anyway and that leaves  $1.91 CAD.  If you did rebuy then you made that much if you didn't you made less or missed out on the $3 shareprice gain and the next ex-div coming up.  Like I said more than a couple missed out one of those being the 20k window man who is still waiting for the big drop that isn

[FiddyFiddyOddzz]

QUIN - You're right, about two bucks if you subtract the 86 cents you woulda received had one held the stock. And as you said, that's only "IF" you managed to get back in fairly quickly and not wait for the "big drop" that never happened.... Quin wrote:"So that is a net of $2.77 CAD.  Subtract the $.086 for the div payment anyway and that leaves  $1.91

[Quintessential1]

The other thing to keep in mind is, if you are doing this outside of a registered account you will be expected to pay capital gains tax and as you buyback you are buying back higher and higher as the cycle continues.  Not neccessarily a bad thing depending on your financial situation but it something to keep in mind and it has to be actively managed where as collecting a dividend requires