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Enerplus Corporation Message Board

  • sollid_companiess_only sollid_companiess_only Apr 18, 2014 9:31 AM Flag

    ERF Has Done Ok By Me!

    Two years ago, I invested $7k in ERF shares. My holdings are in a self-directed IRA account, thus they don't get hit with the Canadian 15% tax/haircut. I have about 10 dividend paying quality energy stocks in this account. ERF has outperformed them all, yielding a gain of 72% over the last two years.

    Thanks ERF!

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    • If you live in Canada you are correct; if you live in the US you will get withholding of 15% regardless what type account you have ~

      • 3 Replies to mr_ortooglo
      • Let me clarify. If you hold ERF in a taxable account, your dividends are subject to a 15% Canadian withholding tax plus they will be taxed again by the US at a 15% rate. You may be able to reclaim your 15% Canadian tax withholding as a credit on your US tax return. However, if you have your ERF shares in a qualified US retirement account, Canada will not withhold their 15%. See Enerplus home page for 'Tax Info for U.S. Investors and you will see that this has been the case since 2011. See excerpt below:

        For 2011, if Enerplus shares are held in a taxable U.S. account, the dividend is subject to a minimum 15% Canadian withholding tax that is withheld prior to any monies being paid to shareholders. U.S. investors may be able to receive a foreign tax credit with respect to this withholding tax. Where shares are held in an IRA, withholding tax should no longer apply.

      • "you will get withholding of 15% regardless what type account you have ~"

        That's not true, you need to investigate and save 15%. Canada does not withhold the 15% tax, on dividend payouts, if your stock is held in a U.S. retirement account.

      • Mr. ortooglo-regardless of the 15% tax, buy and hold ERF Dripping the dividend.

    • Solid-companies-only,

      Two years ago in April the lowest closing price of ERF was 19.72.

      So there is no way - even counting dividends - that you could of purchased Enerplus 24 months ago and made a 72% return on your investment.

      Sentiment: Strong Buy

      • 2 Replies to hardmetalman1
      • I've done the exact same thing, dates off just a little, and have a 57% return. My best performing stock. Long ERF. { Dripped }

      • Hardmetalman, since you are picking one point on a graph for exactly two years ago, let me be more specific. I purchased my initial lot of ERF shares on EXACTLY the following date, 7/18/2012 (From Fidelity IRA). I purchased this lot at EXACTLY $13.24 a share and have had the dividends dripped ever since. The stock even dropped below $12 on a couple of occasions.

        Yes, you are correct when you state that two years ago the pps of ERF was around $19.72. However, the price did fall off dramatically, shortly thereafter, and ERF shares stayed in the range of $13 to $15 a share for a period of about 12 months, from May 2012 to May 2013, the period in which I bought my initial lot. And for a year I dripped while the pps was below $15.

        Actually, that makes my gain of 72% even better as I did it in less than two years, by about two months. But if you want to be a nit-picker and insist the the two year period then I'll grant the correctness of you assumption. I should have been more exact in my initial post.

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