I Bought A Gem That Yields 8.5% With No Tax Consequences Until Sold

In an article published Oct. 20, 2015, "My Top 10 Dividend Growth Stock Portfolio: I Bought A Gem That Yields 8.5% With No Tax Consequences Until Sold," I stated that this company was a gem due to the fact that there are no taxes on the dividends paid. This company is not an MLP; therefore no extra paperwork or concern about potential UBTI or recapture issues. Currently, their per-share dividend is based on is equivalent to an 11% yield.

Enbridge Energy Management (or EEQ) pays quarterly distributions in the form of additional shares. The distributions are comparable in value to the quarterly cash distributions paid by Enbridge Energy Partners (or EEP). Specifically, the distribution of additional EEQ shares is determined by dividing the cash value of a distribution declared by Enbridge Energy Partners by the average closing price of EEQ shares for the 10 consecutive trading days prior to the ex-dividend date.

Source: Seeking Alpha

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