RE:RE:RE:CttglvrPerhaps
I was attracted to LCS because it was trading at a discount to NAV which IMO provides some downside protection. Even there I bought based on expectations of capital gains as opposed to buying for the yield and this worked out quite well.
In the case of ENS, the premium to NAV has dropped considerably recently and in that sense has become more attractive to me. When the premium is in the teens, I have no interest in buying any split because the downside risk of an adjustment to the premium is simply too great.
As you have mentioned in previous posts WRT ENS, part of the difference in the yield between between ENB and ENS is the fact that ENS pays out more than it receives in dividend income from ENB and this needs to be factored into a buy decision. I am willing to accept your argument that after factoring this in, ENS can be fairly priced with a low to mid single digit premium.
In the world of splits, there are others that right now have a similar premium to NAV as ENS and actually pay a higher yield and the NAV is significantly higher than the $5 cutoff for payouts which adds a safety factor to a buy decision and so they are more attractive to me at this time. I might even buy some of them tomorrow...lol