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Alpine Dynamic Dividend Institutional Message Board

  • kcwolfe2003 kcwolfe2003 Feb 14, 2010 7:53 PM Flag

    A question for longer time owners of this fund

    This is not intended to criticize or disparage anyone's opnions, we are entitled to them (the AOD board is another matter as some over there are pretty rude) but when this fund clocked in at $3.90 or so last March, with companies at that time cutting (e.g., GE) or simply suspending dividends (e.g. bank stocks), was there this much banter over the sustainability and payment of the fund's dividend payment as there is now with many companies now starting to resurrect or increase their dividends, and with their balance sheets having improved significantly since that time? Admittedly, I am being lazy and not going back to review the messages as I purchased my initials lots of this fund over time starting last summer. I am simply curious.

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    • I know even more who went broke in 2008 holding allegedly quality stocks. Meanwhile, my A-rated individual muni bonds not only preserved every $$$, but started selling at an unheard of 11% premium, which I grabbed.

      I agree that now is a poor time to buy individual bonds, but with my high-yield bond funds I'll let the fund manager deal with it and just pay me my 12% per year. I like the fact that they don't sell off like stock funds during corrections.

    • 1% increase in yield will equal 10% decrease in share price.

      I know lots of folks in the 70s that went broke holding "safe" bonds.

    • Bonds are a good wealth preserver though. I find my bond funds hold up much better during selloffs. although I agree they don't have the growth potential. After what we've been through the past few years, I could never be 100% in equities.

    • CEF Connect is showing a yield of 9.81% for KMM and 0.07 cents per share monthly. Also 4.89% discount to NAV and 100% income distribution (no ROC)

      http://www.cefconnect.com/Details/Summary.aspx?ticker=KMM

    • I recently sold all of my AGD position @ 9.37 and bought AOD @ 8.32. The price difference of $1.05 put me ahead by 11.20% minus a couple trade commissions.

      Although now a holder of AOD, I seldom post over there since it is crawling with as you put it "rude people". I like to think of them as A-holes.

      Since the two are ETF's and trade like stocks, this gives me the flexibility to trade at will. I might play AOD against AGD in the future or use the proceeds to buy a different ETF/CEF. It all depends on how prices move in relation to each other.

      • 1 Reply to porkus_chopius
      • Good e-mails Porkus, as usual. I devour these e-mails and of course throw out those where people are knocking each other (e.g., AOD board). I have been looking for income, notabaly to supplement my parents retirement income. I sold a portion of AOD at a nice gain, keeping it for now in cash, but kept some shares. I see where the release of its next three month's distributions are to occur this week. I do my DD on issues that people toss out here. I am now looking at alsaw's KMM. Thanks again.

    • ....The Alpine Funds appear to have new co-portfolio managers that may start buying some higher yielding North American issues i.e. PNNT..
      ....The economy is slow in recovering, the value of Alpine Funds will also recover.
      ....A lot of banter over sustainability of dividends, as a income investor there is no problem as I see it in the near term.
      ....Couple other funds that are suited to income stream investors that may appeal with high yields are: ETY, EXG, IGD. I like AOD as well!!!!

      • 2 Replies to alta10bc
      • Re: ....Couple other funds that are suited to income stream investors that may appeal with high yields are: ETY, EXG, IGD. I like AOD as well!!!!

        Be aware that ETY has an ROC of 89.5%, EXG has an ROC of 91.9% and IGD 74.3%. As for price, ETY and EXG over the past 6-months have been flat while IGD has actually declined. Nothing wrong with owning these as long as you are ok with receiving ROC distributions rather than actual income. Since your own money is being handed back to you with ROC, the only way to realize any value is to sell when prices are higher to capture a capital gain.

        Go to CEF Connect, click the distributions tab and note the amount of ROC. Under the chart, click interactive. Then check the prices over 6-months by selecting the 6-month display option. When a fund is flat or declining in price and your monthly distributions are ROC, you are receiving no value and there is no point in owning the fund.

      • Personally I don't worry about the sustainability of the dividend. I just hope they are on their game with their trading, because with a low NAV and a high yield, there is little, if any, cushion here for mistakes.

    • Yes, I first bought AOD and ADVDX in late 2008, and there has always been the same debate going on here and on the AOD board, over and over. It is perennial, like the seasons.

 
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