Alpine Total Dynamic Dividend Fund (AOD) (the “Fund”) today announced that its Board of Trustees (the “Board”), as part of an ongoing evaluation of strategic options focusing on enhancing shareholder value, has authorized a share repurchase plan (the “Repurchase Plan”). Under the Repurchase Plan the Fund may purchase, in the open market, its outstanding common shares.
So they can't make buying other company stock to work so they are going to buy their own.
In all honesty this could be good or bad.
Good if they retire the shares but then I'd have to question how they are going to increase their income and work their way out of their hole.
Bad if its for stock options for management where essentially they are using shareholder profit to buy shares and give to themselves.
There has got to be better income funds with less questions.
Don't look for the buyback to benefit shareholders. The first problem is that no dollar amount was announced. You can bet it will not be big. Second AOD was originally established as an above average income fund. That is no longer the case. It is a below average income fund with a poor NAV track record. It makes no sense to invest money in AOD where there other good income opportunities.
I am placing an order to buy, as I have already owned this fund since inception. Seeing a good move to restore shareholder value by management is indicative of them getting complaints from major shareholders who have stayed the course. Dividends continued. I know that Wells Fargo has offered this fund to clients on a long term basis for Advisor accounts. Why are you here to advise people not to buy?