Scooped up More Enbridge Income Fund Holdings (ENF)

Enbridge Income Fund

On December 19th, I added 43 shares of Enbridge Income Fund Holdings. (TSX: ENF) to The Dividend Beginner’s portfolio.

With Trump taking the reins soon and interest rates going up again, I’ve modified my approach a little bit, as I look into sectors which may benefit as a result. According to CIBC,

If history is any indicator, should U.S. rates continue to rise steadily, as anticipated by CIBC Economics, then the cyclical sectors – technology, energy, consumer discretionary, industrials & materials – should fare far better than defensive sectors – consumer staples, telecom, health care & utilities.

While I have not yet decided whether I want to increase my exposure to oil development, I thought that ENF would provide a much less risky attempt at gaining some income from this environment.

This is the second time I invest in ENF, as it’s a nice way to extract very decent income on a monthly basis from a great parent company, Enbridge. I’m not so much a fan of the metrics that ENB boasts, but do like where the company is going. So, for the time being, I parked some money into ENF.

Yield on cost lowered to 5.76%

Considering I paid $34.80 per share of Enbridge Income Fund Holdings, I scored a yield of 5.36%, paid out monthly.

I first bought 50 shares of ENF in March for $30.01, which was a yield on cost of 6.22%. Factoring in my transaction costs, I now have a total cost basis of $3,010.80 for 93 shares. With the annual dividend of $1.866, my shares bring in $173.54 of income. All in all, this equals a total yield on cost of 5.76%.

Dividend Income increased 3.50%

Before Net Increase After
Annual Dividend Income $2,295.24 $80.24 $2,375.48
Monthly Dividend Income $191.27 $6.69 $197.96
Percentage Increase +3.50%

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