Q: Happy New Year 5i!
Very long term owner of ENB $62.50). With the stock finally back over $60, is there a price where you would trim or exit? I think it is getting to the point where the upside potential is lower than the downside risk
Thanks, Greg
Very long term owner of ENB $62.50). With the stock finally back over $60, is there a price where you would trim or exit? I think it is getting to the point where the upside potential is lower than the downside risk
Thanks, Greg
5i Research Answer:
At 22X earnings, it is on the 'expensive' side of things, but is still likely attractive to most for its 6% dividend, considering the rate picture in Canada. We would not consider it a SELL, but in the $66+ range we might look at it as source of cash if an investor wanted to move to a more growth-focused company. But we continue to like it overall, and would consider it a 'safe' name in a market correction. But we would certainly not expect another 36% gain as we saw last year.