Making Enbridge Income Fund My Second Largest Holding

Enbridge Income Fund

On April 19th, I added 49 shares of Enbridge Income Fund Holdings (TSE: ENF) to The Dividend Beginner’s portfolio. I purchased the shares at $33.55, with a trading cost of $6.95 for a total investment of $1,650.90.

This pushes my total cost basis for my collection of 142 ENF shares to $4,661.70 (this figure includes comissions).

I previously bought 43 shares in December 2016.

I had also bought 50 shares in my first purchase of ENF over a year ago, in March 2016.

Yield on cost rounds out to 6.25%

The per share cost basis in this 49 share purchase round comes out to $33.69. With an annual dividend of $2.0532, my yield on cost here is 6.09%.

In my first purchase of 43 shares, the per share cost basis rounds out to $30.15; yielding 6.81% on cost.

In my second purchase of 50 shares, the per share cost basis rounds out to $34.96; yielding 5.87% on cost.

Now with my combined 142 shares of ENF, my average cost basis comes out to $4,661.70, or $32.83 per share. With an annual dividend of $2.0532, my final yield on cost is still a sweet 6.25%.

Utilities exposure increased to 23%

Portfolio exposure to the Utilities sector has increased from 20.88% to 23.10%. Enbridge Income Fund Holdings now accounts for 8% of my overall portfolio, and is my second largest holding behind Alaris Royalty Corp.

The positions I count towards my Utilities exposure are TransAlta Renewables Inc., Fortis Inc., Enbridge Income Fund Holdings and BMO Covered Calls Utilities ETF. 

For TransAlta Renewables and ENF, they could both really go into either Energy or Utilities but I believe they fit better into the latter for what they actually are.

Portfolio diversification

Dividend Income increased 3.69%

My 49 new shares in Enbridge Income Fund Holdings adds $100.61 to my annual dividend income, or $8.38 averaged per month.

Previously I earned $190.95 per year due to my 93 shares in ENF. This accounted for 7% of my overall dividend income.

Combining my new annual dividend income with my previous, I now earn $291.55 per year from ENF, accounting for 10.32% of overall dividend income. This averages out to $24.30 per month, up from $15.91.

Before Net Increase After
Annual Dividend Income $2,724.41 $100.61
$2,825.01
Monthly Dividend Income $227.03 $8.38
$235.42
Percentage Increase +3.69%

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