Enbridge Series R Preferreds

The shares were originally recommended at $25.06 and paid a $1 dividend to yield 4% at the time. The dividend will be reset on June 1, 2019 to provide a return equal to the five-year Government of Canada bond yield plus 2.5%. Those bonds were yielding 0.65% last week, which would translate into a return of 3.15% if that were maintained. That explains why the share price has fallen so sharply, despite the current yield of 6.3%. - Gordon Pape