Alright...just taking about $ 970. you could afford 48 shares...so you would recieve $ 14.40 in divs each month ...now that doesn't sound like much, but in a year that would be...$ 172.80.... and THAT is a 17.8 % return on your money. ...and there is the chance that your share price would go up in that time also ( you ARE talking about " energy"...from a " neighbor/ally" )
You would also have the choice of re-investing your accumulated dividends along the way.... so you could be getting closer to 16, 18, or 20 dollars per month by the end of the twelve month period.
The " key" in that situation is to watch and watch for a dip in price during the month...and buy your shares as low as possible. ( Usually dips right after the div- date.... but turns around and inches back UP )
P.S. Even if you deduct the 15% Cndn tax....you still end up with a return over 15.3% ....what's that ? about 5 times what the bank pays?Answer 2
If you own it before 8/20 you would get $0.30/share Canadian converted to US$ at the time, times 0.85 (15% Canadian withholding) 9/15, 10/15, and 11/15. In a taxable account you would get foreign tax credit for the 15% withholding which will offset any US tax due (monthly distribution is considered a "qualified" dividend at long term gain rate). In an IRA you cannot recover the Canadian withholding.