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Alpine Total Dynamic Dividend F Message Board

  • keltus1952 keltus1952 Jan 21, 2013 2:30 AM Flag

    New 52 week low needed..?

    Previous low was 3.71. A price of 3.70 would give a discount to NAV of about 18% and a "new" yield of 8.75%. Can't see much value above that price.

    I have years of extensive experience holding / trading CEFs. Never owned this, but was aware of it from the beginning. Probably the most ridiculous concept ever invented. The nature of 'div capture' causes all the NII to be taxable income, when in fact much of it should always have been ROC (return of capital).

    We all could sit on our computers all day, follow x-div dates and capture all the divs we could ever want. If the stock didn't make up for the x-div amount with a corresponding price recovery, well, we'd lose $$ on the stock, but will have collected the dividend. Not much of an accomplishment.

    Will be watching Tuesday morning.

    Good luck all............................Kel

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    • well said. what are your thoughts on AGD ? how has that managed to stay at a premium for so long. one would think it would trade at a discount similar to AOD. defies logic.

      • 1 Reply to bluebuick2003
      • Hi BB............I just viewed the profiles on their website for both AOD and AGD. The only real difference between the 2 seems to be that AGD desires to provide income from dividends that are "more than 50% tax exempt." Not sure how they expect to accomplish that. AOD doesn't show that statement.

        More thoughts on AOD pricing.......Your thoughts (different thread) on buying AOD at a 15%~ discount are reasonable, at least for a trade. That sounds OK. The thing is, even this new, lower dist rate isn't justifiable. Still almost 7% based on NAV. Should be more like a 4-5% dist based on NAV, maybe in the 2 cents a month area as a maximum.

        After all, AOD is just an equity fund, doesn't even write calls against the portfolio, which would enhance the return.

        Just my opinion.........Kel

        ps........Have you ever been to the INVESTOR VILLAGE....'closed end funds' message board? Very informative and helpful. AOD / AGD discussed there.

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