E Split Corp ENSPF

Added 5,000 shares this morning

[Obscure1]

I don't really want or need any more ENS shares but sometimes the math just says "go"

At $11.06 per share, the yield was 14.1% (or 15.3% on a 367 day basis).  Of course the share price will adjust downwards by $0.13 on Friday but that is irrelevent.  

A real 15.3% yield on ENB is ridiculous imo in terms of risk reward.  Middlefield allocates 30% of the return as capital gains which postpones the tax payment until you sell.  Therefore owning ENS carries two tax advantages (delayed tax and capital gains treatment on 30% of the divi when you do sell, and the dividend tax credit on the other 70% of the divi).  ENS is a core investment for me.  

I'm always keeping an eye on the math in order to try and prempt any Raises by Middlefield.  Currently, the Premium to the ENS NAV is only 2% and the more important calculation of Market Value of the Unit vs the NAV of the Unit is in good shape.  

I have to commend ENS shareholders for what appears to be more disciplined investing in the last couple of months.  The 14% yield is great, but not at the expense of getting poked in the eye by Middlefield.  I will continue to monitor the Premiums and let you know when it starts looking risky.  What you do with the info is up to you.    

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[Experienced]

Another great post Obscure... While I agree with most of what you say and I do own ENS but as an underweight as opposed to your overweight position, let me offer a slightly different perspective based on how I invest. Everytime I make an investment decision, I look at whether that decision is the best one I can make when looking at the universe of stocks I can buy or sell.  I also make

[Obscure1]

Valid points Experienced.  I have always been a "total return" investor as well.  However, at this stage of my life, I do appreciate the simplicity of a "set it and forget it" strategy.  While I tinker back and forth for fun (and better returns) my comfort level with an ENB derivative yielding 14% ticks a number of boxes for me. I'm not smart enough (or

[Experienced]

lol....with all due respect Obscure -  buying a leveraged investment and one where you need to keep track of the premium to NAV in case the fund manager does a raise at a discount to the SP is hardly a "set it and forget it "stock in my books. Frankly buying an ENB preferred at the peak of an interest rate cycle just after they set the dividend (at the peak) for another 5 years is

[Obscure1]

I do the math for fun.  It takes me about one minute per day.   I sold the 5,000 today that I bought yesterday for a $1,000 win.  Nothing to brag about but it makes me happy. 

[Experienced]

Obscure...I continue to be in awe of your math skills....lol

[Beuler]

Bought in 2020, 6.24 in payouts, down a dollar on the sp. Wish ide sold more at 17 but still at an overall gain, started adding again.