Q: I am retired and looking for dividends and some safety in a cash account. I have $10,000 to invest. Please give your take on ZPAY and ENB.
5i Research Answer:
Comparisons of an ETF to a single stock are of coursea bit of an apples to oranges comparison. ZPAY pays an annualized distribution yield of 6.34%. MER is high at 0.73% while the funds net assets are at $306.21M. ENB on the other hand pays a healthy dividend yield of 7.61% and generates very high cash from operations but does face the risk of higher debt. ENB's dividend looks fine and the stock also offers some growth upside with the improved interest rate outlook for 2024. ZPAY should offer more stability than ENB, being a diversified ETF, but we think both fit the bill for a bit of stability and outsized yield.