Enbridge Income Fund Holdings Inc and Enbridge Inc released a $500,000,000 secondary share offering today at $33.15 a 3.5% discount to the previous day's trade of $34.51. At $33.15 ENF has a yield to cost of 6.193%. The offer closes April 18, 2017.
http://www.marketwired.com/press-release/enbridge-income-fund-holdings-inc-announces-05-billion-secondary-offering-common-shares-tsx-enf-2205637.htm
My portfolio already has a significant number of ENF shares 800 @ $30.3604 with a yield to cost of 6.7627%. The position provides a total yearly income of $1,642.56.
The price drop presented a compelling opportunity and led to a decision to overload my position though picking up 300 more shares at $33.29. Effectively, my share count is now 1,100 @ $31.1693 with a lower yield to cost of 6.5872%. However, the new position now provides a higher yearly income of $2,258.52.
Welcome to The 2K Club.
I will need to monitor as this add-on as it is completely funded with debt at 3.45%. The dividend covers the interest payments nicely plus some of the principle. If the shares increase enough then it will be an opportunity to lighten up. Utilising investment debt is a add-on strategy to my original dividend portfolio goal. My portfolio will forego Dividend Reinvestment and replace it with earlier and larger share purchases with the cash flow paying off the debts.
We're nearing the end of March and I will start working on my 50K Report for Q1 FY2017. Since Q4 FY2016 there have been interesting developments bringing me ever-so-slightly closer to the 50K goal.
keep up the great work. I enjoy reading your posts.
ReplyDeleteyour blog deserves much more traffic. looking forward
to your report.