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.
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.
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.