CA - Buy These 2 Very High Yielding Preferred Stock Bargains From Enbridge

2024-04-04 13:00:00 ET

Summary

• Enbridge preferred stocks carry an investment grade BBB- credit rating but offer yields that are extraordinarily high relative to typical U.S. BBB- rated preferred stocks.
• Enbridge preferred stocks not only pay “qualified” dividends for large after-tax yields but are “reset-rate” preferred stocks and thus offer protection against higher interest rates.
• In this article I will focus on 2 Enbridge preferred stocks with the tickers EBBNF (or ENB.PF.U on the Toronto Exchange) and ENB.PR.Y.
• Because both have high reset yields, I expect them to move higher in price as their reset dates approach, so I expect high yields plus capital gains.

Enbridge

Enbridge Inc. ( ENB ) is a large Canadian energy company that has investments in energy infrastructure. It is one of the blue chips in this space with a BBB+ credit rating. ENB has investments in pipelines, utilities, renewable energy, energy services, and storage facilities. Its investments are not just in Canada but also in the USA. It is a "dividend aristocrat" with dividend increases every year for more than 25 years. That's why it is surprising that they offer such attractive high-yielding preferred stocks....

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