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E Split Corp T.ENS.PR.A


Primary Symbol: T.ENS Alternate Symbol(s):  ENSRF

The objective of the Class A shares is to provide holders with non-cumulative monthly cash distributions and the opportunity for capital appreciation through exposure to the portfolio. And The investment objectives for the preferred shares is to provide holders with fixed cumulative preferential quarterly cash distributions and return the original issue price of 10.00 Dollars to holders upon maturity. The Company has a portfolio comprised primarily of common shares of Enbridge Inc. Enbridge, a North American oil and gas pipeline, gas processing and natural gas distribution company the Enbridge Common Shares or the Portfolio and intends to purchase Enbridge Common Shares from time to time in the market or through participation in future public offerings by Enbridge. The Advisor believes that the Company offers investors an opportunity to gain exposure to Enbridge, one of the worlds largest energy infrastructure companies.


TSX:ENS - Post by User

Comment by Experiencedon Jan 06, 2024 12:57pm
65 Views
Post# 35813836

RE:RE:Premium continues to shrink

RE:RE:Premium continues to shrinkcttglvr...good question

The Bs were reset last year for the next five year term so the dividend stays constant until 2027.  

The short answer to your question is that once the 5 year dividend reset is done, the shares are priced in the market so that outside of small day to day fluctuations, the yield on any of the preferreds is basically the same and so it really doesn't matter which one you buy.  So right now the yield on the Hs is a bit higher than the Bs but next week it could be opposite.  The only real consideration is to keep track of the reset dates since they are different for each of the preferreds.  Going into a reset you will see some repricing depending on interest rates.

In my case, I don't expect to hold the preferreds much beyond 2 more years (or shorter) assuming interest rates fall as per my base case scenario.  So I expect to sell long before the next reset date for any of the preferreds and increase my asset allocation back to a higher weighting of common shares.

Hope this helps...
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