I always like a nice big dividend to protect against the downside and really boost the upside, and an almost 10% yield is one reason why I like Enerplus Resources Fund (USA) (NYSE: ERF). This is a Canadian oil and natural gas company with a steady rate of growth and a fine dividend, and it's one to grab if you can get it for the right price.

Beyond the substantial dividend, I also like ERF's size and strategy -- I think the company is well placed to keep delivering the growth and the profits of the past few years. It has a wide range of reserves, which means it can avoid costly acquisitions; this range also will give the company some steady revenue as it undertakes its current efforts to expand drilling in oil sands, a competitive but potentially lucrative source of oil.

Despite these strengths, there are a few risks. For one thing, the price of oil and gas could decline -- though that
seems unlikely these days. But there's also a very good chance that Canadian legislation will mean that trusts like ERF are taxed starting in 2011. If this goes through, it will of course cut into ERF's profits. The big question is when this will start affecting share prices; it's hard to know, but I imagine it won't be until after 2009. There's also the fact that the stock price has been pretty volatile, perhaps in part because investors pick it up to get the dividend and dump it shortly thereafter. But this up and down cycle only presents opportunity for a savvy investor who can jump in when it's low.

Type of Stock: A Canadian oil company with solid reserves and an excellent dividend.

Price Target: ERF is currently trading around $47, or the midpoint of its 52-week range. I think it's a good buy if you wait for a pullback below $45.

Hilary Kramer is a financial editor and money coach for AOL and an authority on investing. Visit her at www.hilarykramer.com.