The main risks are credit risks and the possibility of a lower reset so a lower dividend rate for five years, post 2027. On credit, we would not have any concern. Nothing is guaranteed, but ENB has significant assets and cash flow, and these preferreds rank higher than common shares. Common dividends could be stopped to protect the preferreds, if needed. This move alone would save ENB $7B annually. It is hard to predict the future price, of course. It is likely rates might be lower in 2027. But in the interim, its rate is set for four more years, and if rates do fall in Canada the preferreds could increase in value somewhat. We never 'expect' a preferred to be redeemed, but it is possible if rates do go lower and it is in the company's interest to redeem. Overall, we would have no concern owning this for US income. That being said, if rates do stablized or fall then common equities should also do well, and likely 'better' if economic growth is maintained. We would prefer a group of quality US-pay blue chips over a single preferred share.
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