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E Split Corp ENSPF


Primary Symbol: T.ENS Alternate Symbol(s):  T.ENS.PR.A

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

Post by Obscure1on Feb 01, 2024 12:49pm
120 Views
Post# 35857415

Another factor to be aware of

Another factor to be aware ofI have mentioned how ENB has many long term holders.  

What I didn't mention is that I suspect ENB likely has a significant amount of investors who use the DRIP (Dividend Re-Investment Plan).  The DRIP means that 4 times per year (March 1, June 1, Sept 1, Dec 1) there is a likely a lot of buying power dumping into ENB.  That sets things up beautifully for Middlefield to do a Raise as the DRIP buying power supports a high ENB share price strength which Middlefield can use as a selling point. I have noticed that the market for ENS seems to conveniently get "prepped" before a Raise.  

I really like the fundamentals and pending growth potential of ENB.  I just like ENS better because the yield is almost double and payments are monthly.  The only downside to ENS imo is the risk of another RAISE and the risk in increasing.  

As cttglvr pointed out, the ENB share price will likely increase before it goes ex-divi on Feb 14th.  On the 14th and perhaps for a day or two following, the ENB share price WILL take a hit that exceeds the divi payout unless history changes.  How ENS performs at that time and over the remainder of the month will play a big role in whether we see another Raise at the beginning of March.  

Geez, I'm presenting a pretty good case to myself to move to the sidelines before March 1 and maybe as soon as this week depending upon how the trading relationship between ENB and ENS goes.  To that end, ENB is up $0.47 at the time of writing which wipes out the $0.45 loss yesterday.  Meanwhile, ENS is only up $0.06 so the Premium to the NAV should back off a bit today.    
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