Q: I am thinking about swapping out BLX for ENB. I am holding the investment primarily for income. May I get your take on which you prefer as a long term hold? Thanks very much.
5i Research Answer:
Considering valuation differences, yield, safety and size we would be very comfortable with a BLX to ENB switch. We would consider BLX 'OK', but it has weak momentum and we would consider it significantly riskier than ENB. Debt is high, as it is with ENB, but ENB has a more concrete growth and dividend growth plan in place. BLX might offer more upside potential, but ENB we think is the better overall investment, and is also cheaper with a much higher yield currently.