RE:ENS. TO an interesting alternative way to play ENB I found ENS about six weeks ago and moved about a third of my ENB position into it. I did some scenarios here:
https://www.portfoliovisualizer.com/backtest-portfolio
with the DRIP, and while ENS is inherently more risky it backtests well as the better performer. I definitely like the monthly compounding of the DRIP as it is nudges the total return a bit higher, versus the quarterly DRIP with ENB. It is worth noting that ENS is a rare exception in the world of split share funds where they have increased their dividend. That is likely not to recur frequently. This means over a longer term the return of ENS may not track as well as it has so far (against ENB).
Also, keep in mind that a portion of the dividend from ENS will be deemed capital gains, and potentially return of capital, so appropriate decisions should be made as to whether it’s a better vehicle for RSP, TFSA, or non-registered accounts.
Marner16 wrote: This showed up on TD's Webbroker news on Tuesday:
09:58 AM EDT, 04/27/2021 (MT Newswires) -- E Split Corp. (ENS.TO) on Tuesday dropped 0.4% on last look after reporting the closing of an overnight offering of class A and preferred shares for gross proceeds of about $52.7 million.
The class A shares and preferred shares will trade on the Toronto Stock Exchange under the existing symbols ENS and ENS.PR.A, according to a news release.
The class A shares were offered at $13.60 per class A share to yield 11.5% and the preferred shares were offered at $10 per preferred share to yield 5.3%.
E Split said it plans to invest in common shares of Enbridge Inc. (ENB.TO), an oil and gas pipeline, gas processing, and natural gas distribution company.
Price: 13.25, Change: -0.05, Percent Change: -0.38
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Robert Lauzon appears regularly on BNN and is part of the mgmt team at Middlefield Funds. They offer a fund (ENS.TO) which they call E-Split which they tout as "Enhanced Participation in Enbridge". The fund pays out $0.13 per month or $1.56 annually for a current yield of 11.76%
The fund was initiated in July 2018 and originally paid out $0.10 per month which represented a yield of 8% on the $15 offering price. The monthly payout was raised to $0.13 in May 2019.
As a split fund, the investment relies on capital growth to compensate for the yield overpayment.
The fund represents an interesting alternative to playing ENB common shares.