Enbridge rate reset preferred share series 9 ENB.PR.A updated September 12, 2017

The Enbridge rate reset preferred share on our list is updated and rated Buy at $21.16.

These shares are similar to the Canadian Western Bank preferred shares updated yesterday. The Enbridge shares fell sharply in 2015 as interest rates declined and the projected reset yield therefore declines. In addition, I believe that Enbridge restructured in a way that weakened the balance sheet somewhat which further pushed these shares down and I believe this is why they trade somewhat cheaper than the CWB shares. With the recent rise in interest rates these Enbridge preferred shares have gained 13% in 2017.

These shares were briefly under $16 and even under $15 in early 2016.

At this time these Enbridge preferred shares at $21.16 seem more attractive than the similar CWB shares now at $22.73 although that may reflect higher risk. They could be purchased for the 5.2% yield. The possibility of a gain towards $25 would be a bonus and if the shares happen to fall they could continue to be held for the dividend.