Enbridge Inc T.ENB.PR.Y

QUINTY...RE: $USD Dividends,,,,,,,,,,

[Red_Deer]

Hey QUINTY__You asked a number of Questions REGARDING How $USD Dividends are
Administered WITH REGARD to Bank/Brokerage EXCHANGE FEES

Here is HOW This WORKS__at least in My ScotiaITrade account.

First you HAVE to SET UP a SEPERATE $USD account in addition to your Regular $CDN account.

With DUAL LISTED securities__such as ENB__I can make ONLINE Requests to TRANSFER any number of shares BETWEEN my $CDN and $USD accounts__WITH NO FEES.

So to GET the BENEFIT of Taking Dividends in $USD__AND Pay NO FEES__You FIRST Have to
Either BUY shares IN Your $USD account__OR Transfer shares FROM Your $CDN account.

The Dividends that You Will Get IN YOUR $USD account WILL BE the $CDN Dividend CONVERTED BY Enbridge INTO $USD.

BUT__To AVOID all Exchange Fees__You NEED to DRIP Your Dividends IN YOUR $USD account__BECAUSED It is ONLY shares which CAN BE TRANSFERRED with NO FEES Back and Forth between Your US and CDN accounts__Transferring $USD into your CDN account WOULD INCUR Exchange Fees.

You Can OF COURSE Get CASH Dividends in Your USD account and BUY any US Listed shares You WANT TO__Including OF COURSE the NUMEROUS DUAL LISTED Companies.

THUS__When EVER You NEED to GET Some of Your Accumulated Dividends OUT of Your $USD account__You Would HAVE to Transfer FREE of CHARGE Some Enbridge shares__and Then SELL these shares IN Your CDN account__the Sale Commission WILL BE a LOT LESS than Any EXCHANGE Fees WOULD BE.

Right now for example the YIELD in $USD is Quoted as a Bit MORE than the Yield in $CDN.

[canasol47]

This post has been removed in accordance with Community Policy

[Quintessential1]

Thanks for the answers Red and just to be clear I was aware of certain things you mentioned as I do hold certain stocks in a USD account that I journaled over from CAD. Points that I wouldn't mind clarrification on if you don't mind please: 1.  ENB has a corporate DRIP still? 2. When dividends are paid to USD accounts from Canadian companies there isn't a currency exchange fee

[Red_Deer]

Hey Quinnty__I do NOT Know IF ENB has a Corporate DRIP__But THIS is NOT an ISSUE as My ITrade DO their OWN ""DRIPs"" for pretty much ANY Dividend Paying Company__This IS One of  the things I Like About ScotiaITrade__the OTHER ONE is that I Pay ONLY PRIME RATE on My rather Large Margin Account__in That Regard I SEE that AS OF Tomorrow My New Rate WILL BE 5.95% due to the

[Quintessential1]

ENB does not have a corporate DRIP If I recall correctly from previous posts over the years. Your brokers DRIP sounds good but I am not sure why you would hold ENB in US funds just to DRIP the dividend anyway.  The yield in CAD is not higher than the yield in USD and does have to be converted from CAD and then used to buy US ENB shares.  I believe you would receive more shares in the

[bttmfischer]

Red Deer you seem to complicate things. I have ENB common and ENB preferreds among many other things. One of the brokerages IS SCOTIA MCLEOD. The ENB preferreds are in my US account therefore the quarterly dividends are sen to me in a paper check form IN US FUNDS. I take that into a bank, and convert it into Loonies. And get op to 30% bonus on the amount. That's it. The dividends from other

[Quintessential1]

Again...Scotia converts the div from CAD to USD at a lesser rate  than the going exchange rate (why would they pay full knock?).  They send bttmbngr a check which he takes to his bank and has it converted back to CAD again at a lesser rate than the going rate (they always make theirs).  He gets a bump because of the American Exchange rate but ends up with less div than if he had of

[Red_Deer]

This is VERY INTERESTING__To SEE that EVEN THOUGH ScotiaMcLeod (Full Service Broker) and ScotiaITrade (online Discount Brokerage which I use) BOTH OWNED by SCOTIA BANK__do Business in TOTALLY DIFFERENT Ways !!!!!!! No way would I EVER PUT UP With this Kind of NONESENSE from Full Service Brokers eh !!!!!!

[bttmfischer]

Red Deer, actually, they improved somewhat, but nowhere as efficient as the others. I don't mind this method of theirs, the dividend is exactly what it should be on the cheque, and I am content, except they take a number of days to mail ti to me, but 30-36% premium I can live with. The only thing is the dividend is not adjusted for changes in bank rate, but this is not a perfect world.

[Quintessential1]

There is no 30-36% premium.  The CAD amount is converted to USD which ends up being less. The bank also charges him when he changes it back to CAD.   The guy is a dunce.

[silkos]

There is no premium on US vs CAD side. I own several stocks in both CAD and US and there is absolutelly no benefit on having US holding vs CAD when it comes to div.

[bttmfischer]

Silkos, for once I disagree. I bought a number of US stocks in 2010, when the Canadian dollar was worth more than the greenback. As I recall, one loony was worth $1.08 US. Because in the aftermath of the 2008 financial crisis, the shares were cheep. So  while the nominal,  perpetual divdend on the $25 US preferred was 4 1/2 percent, or $1.125 US, and since I bought them for $19.40 US

[silkos]

Hey @bttmfischer Your scenario is different, my comment was general that there is no benefit on US vs CAD side div payment. It is the same amount on boths side of the border, regarless of entry point. I get what you are saying I recall the good times when CAD was at par with the US and took advantage of that. Very likely it won't happen again in my lifetime. There is a reason that I trade in

[bttmfischer]

Silkos que sera sera, but  NEVER SAY NEVER!. Bottom line: the difference between $1.125 and $1.53 is a Premium.  It is not quantum mechanics. I rest may case

[Quintessential1]

Oooh he highlifgted it.  It must be true. Does anyone ever understand what the bttmbngr posts?   Here he demonstrating that $1.125 <  $1.53.  If only he attached those values to specific equities. Well he rested his case so I guess it is all finished.  Kinda like when silkos says I am done with this subject now. I guess its over...done with...saionara...adios

[Quintessential1]

There is one.  If you have stocks that pay a USD div you receive that USD div directly into your USD cash account without foreign currency conversion or charges.  That cash can then be spent abroad and save you from having to convert CAD to USD. Also if you are speculating in currencies obviously dividends paid in USD six months ago are worth more today in CAD. But what the bttbngr is

[silkos]

OK let me rephrase then. From an investing perspective and not taking in consideration exchange rate fluctuations and travel plans there is no advantage investing in US vs CAD side - investors will get paid the same dividend.

[Quintessential1]

Correctamundo!  Which, if you follow the thread, I have said all along. Get your ENB Divs in CAD here! Go Enbridge! ;-)