Enbridge Inc T.ENB

I just sold my entire ENB position

[Marner16]

I typically sell my ENB position before ex-dividend day and then buy it back when the share price quits dropping.  The inefficiency in the share price for ENB happens every quarter because so many ENB shareholders refuse to sell (retail because they don't want to take the capital gain and institutions because they don't bother trading unless it is to tidy up their portfolios at the end of a quarter.

For the last 12 quarters, the share price only dropped less than $2 once.  The last quarter, the drop was over $6 and the two previous quarters were both down more than $2.80.  The biggest drop was at the beginning of the pandemic when the price dropped from $57 down to $33. 

I don't typically get the exact bottom, but if you pay attention, you can get pretty close.

ENB trades in a cycle around the ex-dividend date with the price sagging after the ex-dividend date before ramping up ahead of the next dividend. 

This time around, I won't be in a hurry to buy back in. 

I don't see anything that ENB itself is going to announce in the next 6 to 10 weeks that will inspire buying.  The company doesn't participate in fluff new releases so it typically packs everything into their MD&A presentations.

From a market standpoint, we are almost certainly going to see at least one interest rate hike in the next ten weeks and maybe two. 

I fully expect to see Russia invade the Ukraine as soon the Olympics are over.  The weather has frozen the gound enough already for the Russian tanks to move now but Russia and China are playing nice with each other these days so Russia will likely wait until after next weekend. There is very little the US or Europe can do as they have applied almost all the sanctions that they can.  When Russia and China announced last week that Russia would be supply two new gas lines to China, the currency of trade will be Euros.  As such, Russia has much less to fear in regards to SWIFT threats.

I think it is too early for the Democrats to start handing out goodies before the mid-term elections, so I don't expect to see Biden coming to the rescue. 

I love Enbridge and I always feel a bit insecure when I'm on the sidelines.  However, I'm expecting to be able to buy back ENB in the high 40's or certainly the low $50's in the next few weeks. 

My strategy for ENB is certainly not for everyone.  For me personally, the probability of being able to buy back at a lower price which generates significant profits is just too high to ignore.  I will keep repeating the process until it stops working.

[TimeBuilder]

THANK YOU posting/sharing.  Welcome back! Regards, TimeBuilder

[kentonbaker]

I too sold all of mine today. I've done this for the last 3 quarters and have been quite happy with the results.  Hopefully a repeat this quarter.

[KarlMarx1]

Since ENB is at a new high, it will likely repeat this quarter again.  But I don't really care either way. I usually do the same, however, I replace it in a non-registered account before the Ex Div to get the dividend income (retired here), and buy it back in the RSP after it pulls back. That way I get the Div Tax benefits and any Cap Gains are tax free in the RRSP,  If it doesn'

[TickerTwit]

Nothing is tax-free in an RRSP. It's taxed at your marginal rate on withdrawal. Perhaps you meant "tax-deferred"? .

[Quintessential1]

The transfering of equities between registered and non-registered accounts is interesting though.  Is this doable without liquidating the equity?

[silkos]

I transferred holdings "in kind" between registered / non registered account in the past no problem.

[SargeX]

It definitely is and is called an in-kind transfer. There are no trading fees BUT if going from Registered to Non-registered, the trasnferred amount will be considered income for tax purposes and if going from non to reg, then if the current price is higher than the ACB price, it will be considered a capital gain. If the current price is lower than the ACB, it will NOT be cosidered a capital loss

[Quintessential1]

Thanks to both of you for the responses this information could come in handy.  I generally don't hold equities in registered accounts as I prefer the tax treatments of them outside of them.  If I am going to take a loss I want the Government to partner in it.  That probably isn't a problem with a blue chip like Enbridge but, I still don't do it. Go Enbridge! ;-)

[KarlMarx1]

Indeed, TickerTwit.  I stand corrected.  

[NPCexe]

The only proof of any invasion going on is american troops occupying germany and ukraine lol. I wonder what canada would do if USA mobilized troops at its doorstep... probably not much lol. Looks like USA did pull out of Taliban territory with another agenda in mind after all.

[DeanEdmonton]

I agree. I did exactly the same thing a week ago. Enbridge is trading range bound, and the pre post dividend is a very real pattern. I like the 6% divy but not at the expense of long term capital growth. I want both and the only way to get it is to trade this stock.

[prabhatmalik]

I thought it will be different this time, but no. You were right that it is prudent to sell before dividend.  Next time I am going to sell just before dividend.

[corvette67]

Crazy eh ! Should definitely go to monthly div like Pembina. GLTA

[robert41]

What a great call by you and others I have read your thoughts on this before I'll pay more attention to it next time didn't expect the big drop. Well done! 

[Red_Deer]

Here is the LAST POST by the Genuine MARNER16__February 11th