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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Buy These 2 Very High Yielding Preferred Stock Bargains From Enbridge