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Alpine Total Dynamic Dividend F Message Board

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  • bluebuick2003 bluebuick2003 Jan 26, 2009 12:26 PM Flag

    Is Dividend Capture So Great

    as i've said on this board a few times, i'm trying to give mgmt a pass even though they've lost so much money. it is easy to get angry at the losses and blame mgmt, etc.... the market has been tough for every fund that holds stocks.

    i believe the div capture strategy can be effective whether the market goes up or down. and a special dividend play here and there isn't so bad. but i wouldn't want the special div income to account for more than 5% of the earned income.

    this lack of disclosure on regular versus special makes me think the special piece is much higher. i could be totally wrong but when they don't disclose it, it makes me wonder.

    the real classic is the ANALysts who get paid to follow this company. how can they not ask how much of the earned income came from regular dividends and how much came from special dividends.

    take this analogy, is it good to know the relationship btwn the fund price and the NAV ? would you buy this fund w/o knowing the NAV ? i think we'd all say "no". to me, not knowing the amount of special dividends is akin to not knowing the NAV. you are putting alot of trust in mgmt.

    the reason i haven't sold all of my position (only 50%) is i don't think mgmt wants to drive AOD into the ground. they get fees and such so it makes sense to maintain an asset base and not distribute it all back to us shareholders.


    here is a cut and paste from another CEF i owned back in 07 (ticker is LCM):

    a diversified closed-end management investment company, has declared its quarterly dividend of $0.264 per share, reflecting a reduction of $0.086 per share from the Fund’s most recent quarterly dividend. This represents an annualized distribution rate of 14.35% based upon the closing market price of $7.36 on November 28, 2008.

    The Funds’ management believes that reducing the Funds’ distributions is a necessary step to enhance our ability to maintain and potentially grow the Funds’ net asset values—which should benefit the Funds’ shareholders over time.

    The Funds’ management also believes that convertible securities appear exceptionally attractive following an unprecedented dislocation in convertible and high-yield securities markets, which presented the most challenging and difficult credit conditions since the Great Depression. The Merrill Lynch All Convertibles Index (ticker VXA0) lost 22.8% over the last two months, as both equities and corporate bonds plunged. The Merrill Lynch High-Yield Master II Index lost 23.4% during the two-month period, and was yielding 21.7% at the end of November.

    The Funds are being repositioned in an effort to take advantage of current opportunities in an effort to better achieve their investment objectives of providing total return through a combination of capital appreciation and current income, along with seeking to enhance the Funds’ earning power over time.


    LCM's primary goal is high income to investors, just like AOD. however, they've decided to give up some of the income for now and buy assets. hopefully generating good asset growth in the next 12-18 months.

    i'm going through LCM now as i may move my AOD/AGD holdings over to LCM. i like the decision LCM mgmt made and would like to see AOD/AGD do the same thing.

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