Post by
Obscure1 on Apr 24, 2024 2:01pm
Aadded a chunk
The Premium to the NAV is currently 3.17% which is at the bottom of the range over the past year.
I picked up a good sized batch at $11.40 which equates to a 13.68% yield. That is actually 14.8% for the next 367 days.
Nobody should ever buy ENS if they don't believe ENB is going higher in the future.
Greed scenario: I think that the analyst concensus target price of around $55 is reasonable. ENB is very interest rate sensiitve and I expect that we will see lower rates going forward which should lift ENB. I also expect that ENB's natgas distribution deals will outperform the market expection which should help drive ENB's DCF (Distributable Cash Flow) numbers higher in 2025. As such, I'm hoping ENB will announce in November that it is raising its dividend by more than the 3% that it has announced for the past few years.
Fear scenario: ENS dropped by more than $3 per share from over the first two weeks of April and has recovered fully in the last week. There is a chance that the ENB share price could relapse a bit but even if that happens, there is no risk of missing a divi payment unless ENB stays below $33
Comment by
cttglvr on Apr 24, 2024 8:13pm
I added as well. Looks like the premium is down to about 2%. Experienced...is LCS the split? I see it is trading a little under the NAV. I've been looking at it for a while. I sold LBS as I wasn't too convinced the Banks would outperform in the short term.