E Split Corp T.ENS

Another factor to be aware of

[Obscure1]

I 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.

[Experienced]

ENB suspended its DRIP in 2018 and to the best of my knowledge they haven't reinstated it. Some brokers offer a synthetic DRIP (to make money of course) but this has nothing to do with ENB itself.

[Obscure1]

Thanks for the correction.  I should have checked before adding the DRIP comment. My bad.