Today,,, the fears of higher interest rates and tapering by FED were put to rest by Fed Chief Bernanke, and stock moved up 4% to $21.52. I think, AB should now move back up to around $25 before the year end with a nice 6% plus dividend yield.
Many investors have been bombarded with the idea that investors will flee from bond markets as rates are rising, and if that happens, AB which has 60% of assets in Bond funds, may see heavy redemptions which would reduce it's future income and dividend payments. I think, market has overreacted to this news items and fear is making people dump the stock. It is down from $27 per share to $19 per share. This is a huge drop .
It is all a matter of timing. AB goes up and down in pretty good synch with the broad market. It is a good investment for the longer-term investor (2-5 years or more). It is NOT a good quick trade stock. And don't overlook the excellent dividend yield.