Q: Clarification on Stuart’s question of May 29th. Based on the 2020 reset rate of 2.64% and current 5 year GOC of 1.46% would result in dividend rate of 4.1%. At today’s price of $16.23 would result in estimated reset yield of 6.3% for next 5 years.
Q: Hi guys
I have held this for quite a while and while I have enjoyed collecting about a 6% dividend off my cost basis the preferred price has been falling lately after being up quite a bit at one point.
I am coming up to the end of a 5 year term so the interest rate will be set again by March 2010. ENB.PF.C currently provides an annual dividend of $1.10 and I am wondering given the current interest rates, if it reset today, would that payment go up or down?
This is my only preferred. My thoughts are maybe, if the payment is looking to be going down, then sooner, rather than later, I should sell this preferred and buy a dividend grower stock , like a Fortis, and get both a descent dividend, and some capital appreciation.
I bought the preferred with the idea of stability, but as you know in the last few years this has not been the case.
All the best
Stuart
I have held this for quite a while and while I have enjoyed collecting about a 6% dividend off my cost basis the preferred price has been falling lately after being up quite a bit at one point.
I am coming up to the end of a 5 year term so the interest rate will be set again by March 2010. ENB.PF.C currently provides an annual dividend of $1.10 and I am wondering given the current interest rates, if it reset today, would that payment go up or down?
This is my only preferred. My thoughts are maybe, if the payment is looking to be going down, then sooner, rather than later, I should sell this preferred and buy a dividend grower stock , like a Fortis, and get both a descent dividend, and some capital appreciation.
I bought the preferred with the idea of stability, but as you know in the last few years this has not been the case.
All the best
Stuart