AllianceBernstein Global High Income Fund, Inc. Long Term Capital Gains Distribution Friday December 19, 4:06 pm ET The following press release of 12/19 details the distribution.
I purchased shares today (12/26). My question is: Will I get the dividend since I bought it on the Ex-date? It looks like after hours trading saw a significant drop in the share price. I rarely pay much attention to Ex-dates, but on this one I would like to get it. I was asleep at the switch yesterday!
FWIW, I noticed the Net Asset Value (NAV) was 9.36 at the close today, down 41 cents - (about equal to the distribution). Yesterday at the close the shares were selling at a 25% discount from the stock price (7.37/9.77 = 0.75).
I would like to think that this ETF has capital appreciation potential equal to or better than lots of stocks. Good luck to all!
NEW YORK, Dec. 19 /PRNewswire-FirstCall/ -- AllianceBernstein Global High Income Fund, Inc. (NYSE: AWF - News), a closed-end management investment company, declared on this date, December 19, 2008, a long term capital gains distribution of $0.428 per share of Common Stock, payable January 23, 2009 to shareholders of record at the close of business on December 30, 2008. Ex-date will be December 26, 2008.
AllianceBernstein Global High Income Fund, Inc. is managed by AllianceBernstein L.P.
The sad news is you were a day late in making your buy to qualify for the announced distribution in January. I am astonished at how many investors in CEFs don't understand that the key date for qualifying for a distribution is the date of record--in this case Dec. 30. As you bought your shares on Dec. 26 you need three business days to become the benficial owner, again in your case Dec. 31.
I am truly sorry for you, but I believe that AWF is one of the very best CEFs to own. You can look forward to the high probability that AWF will make a special distribution in April, while you are collecting a high monthly dividend in the meantime. I wish I owned more.
When a stock goes ex-d, the dividend is payable to the seller.
With regards to the fundamentals of the High Yield debt market and AWF, I think the lows may have been put in. The stock has shown some excellent resilience this week, even rising on an EX-d date. Inclusive of the distributions, AWF is now trading over $8.00.
Thanks CAT, That is what I thought but I didn't see the normal decline on the Ex Div date like you might expect, so I wasn't positive. It is trading higher now without the dividend than it was previously.
Since I got this batch in a taxable account I think I am just as glad that I didn't qualify for the dividend. The share price is doing well.
FWIW, some other ETF's that I picked up last week include ESD, EDD and two tax free muni bond ETFs - MVT and NAD. Both of these paid ~9.5% tax free when I got them. They are all oversold in this financial crisis and now have considerable upside potential IMO. I think they are good for old guys like me who like the opportunity to think that capital appreciation might just be possible!