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E Split Corp T.ENS

Alternate Symbol(s):  ENSPF | 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 Jul 09, 2024 10:54am
166 Views
Post# 36124385

The limited upside potential of the Prefs

The limited upside potential of the Prefs

I have a lot of respect for Experienced's stock advice.  

Saying that, I have to disagree with his last post where he speaks about the growth potential of the Prefs after a 3-6 month period.  

When I look at the chart for the Prefs, I see that it is trading at the top of its range over the last 5 years. 

Interest rates were a lot lower prior to covid and it is going to take a long time (if ever) for rates to return to zero.  

The Prefs are more of a security play than a yield play imo.  Of couse interests will swing the share price around a bit, but if ENB goes back up to $55, the price of the Prefs will likely sell off if anything as investors will be looking at how the total return of ENS will outperform. 

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