You still aren't seeing the picture. The amount of dividend each stock pays AOD has not changed for most of the payers. Duke paid $ .92 when it was $20.00 for a 4.6% yield. Today Duke is $15 paying the same $ .92 or 6.1%. Whatever the NAV of AOD is or for calculations purpose the "Price AOD is being bot for, divided into the yields received is a means for seeing what the interest rate is for AOD at that time. Therefore, as I said before if AOD is $20 getting $3 of divvys and pays them to its shareholders the return on INVESTED CAPITAL to the stockholder is $3 divided by $20 equalling 15%. Now the "Trading price" of AOD is $6 but still getting the $3 divvy. The rate of return is now $3 divided by $6 or 50%. The only thing that changes is that some of the securities held by AOD REDUCED the DIVVY they are paying. About 2/3rds are paying as before i.e. utilities, etc and about 1/3rd reduced to about 25% off to 50% off. Under 50% that means AOD is receiving 5/6 of what it was receiving before the present malaise. Don't look at it like AOD is paying out a 50% dividend. It is paying out the same divident when it was $20 in price as it is today at $6.
Good analysis, but this is cherry picking. Duck went down from $20 to $15 (down 25%) and can sustain its dividend, since kind of recession proof. What about ALLIED CAP CORP (ALD), which down from $25 to $2, can they pay 113.50% dividend? What about American Capital (ACAS) which down from $40 to $4, can they pay 90.70% dividend? What about GateHouse Media which de-listed from big board and trading at $0.08. This crap is not coming back in share price or dividend. Look deeper into it. Google/Yahoo each of the portfolio company http://www.alpinecef.com/aod-holdings.html and paint the picture.
These holdings were as of June 30 and hopefully AOD saw some of this coming because some companies will not maintain their divs. However most will or will only reduce a bit. I believe AOD will have to cut as well. !.89 is best case based on 8.00 NAV which colud happen in the next 3 weeks. They have many options available to them if they want to defend the div. I believe we will see some defense and some cutting and would put the range at 1.65 bottom and 1.89 top. We will know in about 3 weeks.