Enbridge Income Fund’s Dividend Shoots up 10%

Enbridge Income Fund

On January 5th, “Enbridge Income Fund Holdings Inc. (TSX:ENF) (the “Company”) announced that its Board of Directors has declared a cash dividend of $0.1711 per common share of the Company (“Share”) to be paid on February 15, 2017 to shareholders of record at the close of business on January 31, 2017. This represents a 10% increase in the monthly dividend over 2016.” (enbridgeincomefund.com)

I just recently bought some more ENF last month as I thought it was attractively valued. I consider it a very safe, sit-and-relax position that I can reap very large dividends from. Not to mention they are committed to a shareholder-friendly dividend growth program like the parent company Enbridge.

Dividend Income increased 0.70%

Considering the Dividend Beginner portfolio contains 93 shares of ENF, my annual income from ENF has increased by $17.41, from $173.54 to $190.95.

My 12-month forward dividend income has increased from $2,499.58 to $2,516.99, an increase of 0.70%. My income from ENF accounts for 7.59% of my annual dividend income.

An increase of $17.41 is actually quite a significant result of a dividend raise so far for this portfolio. It’s the largest single dividend raise I’ve received in this portfolio both percentage-wise and cash-wise.

This would have required an investment of $298, at a yield of 5.84% (ENF’s dividend yield on the date of the raise) to generate $17.41 in dividend income. That’s the equivalent of getting up to 30 hours of your life back, depending on your wage.

Before Net Increase After
Annual Dividend $ 2,499.58 $17.41 $2,516.99
Monthly Dividend $208.30 $1.45 $209.75
Percentage Increase 0.70%

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