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ALPINE DYNAMIC DIVIDEND FUND
03-15-2007, 08:17 AM
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#1
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Recycles dryer sheets
Join Date: May 2006
Posts: 133
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ALPINE DYNAMIC DIVIDEND FUND
Anyone invested in this fund? Symbol is ADVDX. This looks like a good alternative to bond funds. Plus you get the dividend tax rate instead of the interest tax rate. Current yield is 13.7%.
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Re: ALPINE DYNAMIC DIVIDEND FUND
03-15-2007, 08:47 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Feb 2005
Posts: 2,032
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Re: ALPINE DYNAMIC DIVIDEND FUND
Why would a mid cap value fund with a Beta of 1.04 and an R-Squared of over 70% be a substitute for a bond fund?
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Re: ALPINE DYNAMIC DIVIDEND FUND
03-15-2007, 08:57 AM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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Re: ALPINE DYNAMIC DIVIDEND FUND
I can't imagine a dividend yield of 13% is sustainable. Either there was a very large one-time recent dividend distribution or else the stocks owned by the fund are very beaten down and likely to not be able to maintain their dividends.
Beyond that I'm not familiar with the fund so I can't comment on specifics. I just think a 13% yield is either a short-term anomaly or a red flag that there are some very weak businesses being held.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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Re: ALPINE DYNAMIC DIVIDEND FUND
03-15-2007, 09:11 AM
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#4
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Recycles dryer sheets
Join Date: May 2006
Posts: 133
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Re: ALPINE DYNAMIC DIVIDEND FUND
Quote:
Originally Posted by ziggy29
I can't imagine a dividend yield of 13% is sustainable. Either there was a very large one-time recent dividend distribution or else the stocks owned by the fund are very beaten down and likely to not be able to maintain their dividends.
Beyond that I'm not familiar with the fund so I can't comment on specifics. I just think a 13% yield is either a short-term anomaly or a red flag that there are some very weak businesses being held.
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It pays a monthly dividend. The total dividends, per share, in 2006 was $1.574 and in 2005 was $1.51. The 2006 yr-end closing price was $12.80 and for 2005 was $10.44.
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Re: ALPINE DYNAMIC DIVIDEND FUND
03-15-2007, 09:13 AM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
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Re: ALPINE DYNAMIC DIVIDEND FUND
Quote:
Originally Posted by hogwild
It pays a monthly dividend. The total dividends, per share, in 2006 was $1.574 and in 2005 was $1.51. The 2006 yr-end closing price was $12.80 and for 2005 was $10.44.
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Very interesting. I wonder how recession-proof these dividends are. I have my doubts. I suspect this fund may move with junk bonds, but I could be wrong.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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Re: ALPINE DYNAMIC DIVIDEND FUND
03-15-2007, 09:26 AM
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#6
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Recycles dryer sheets
Join Date: Oct 2005
Posts: 325
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Re: ALPINE DYNAMIC DIVIDEND FUND
I have owned this fund for a couple of years. It invests in stocks for at least the 60 day holding period so that it gets the 15% dividend tax treatment. The fund has a high turnover and high expense ratio but has done well for the last couple of years and has had a yield of 12 - 13 % for the same period.
Here is a link to morninstar to check out top 5 holdings (GE is one of them).
http://quicktake.morningstar.com/Fun...e&Symbol=advdx
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Re: ALPINE DYNAMIC DIVIDEND FUND
03-15-2007, 09:34 AM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Re: ALPINE DYNAMIC DIVIDEND FUND
Quote:
Originally Posted by CybrMike
I have owned this fund for a couple of years. It invests in stocks for at least the 60 day holding period so that it gets the 15% dividend tax treatment. The fund has a high turnover and high expense ratio but has done well for the last couple of years and has had a yield of 12 - 13 % for the same period.
Here is a link to morninstar to check out top 5 holdings (GE is one of them).
http://quicktake.morningstar.com/Fun...e&Symbol=advdx
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GE and Wyeth pharmaceuticals..........not your typical "weak businesses"..............
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
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Re: ALPINE DYNAMIC DIVIDEND FUND
03-15-2007, 09:36 AM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
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Re: ALPINE DYNAMIC DIVIDEND FUND
Quote:
Originally Posted by CybrMike
I have owned this fund for a couple of years. It invests in stocks for at least the 60 day holding period so that it gets the 15% dividend tax treatment. The fund has a high turnover and high expense ratio but has done well for the last couple of years and has had a yield of 12 - 13 % for the same period.
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Ah. It's a fund that darts in and out of stocks that "buys dividends."
I knew there had to be something to it. Seems like that would cause the NAV to plummet in a down market.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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Re: ALPINE DYNAMIC DIVIDEND FUND
03-15-2007, 09:38 AM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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Re: ALPINE DYNAMIC DIVIDEND FUND
Quote:
Originally Posted by ziggy29
Ah. It's a fund that darts in and out of stocks that "buys dividends."
I knew there had to be something to it. Seems like that would cause the NAV to plummet in a down market.
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Doesn't the NAV of mutual funds in equity funds in general "plummet" in a down market??
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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Re: ALPINE DYNAMIC DIVIDEND FUND
03-15-2007, 09:41 AM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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Re: ALPINE DYNAMIC DIVIDEND FUND
Quote:
Originally Posted by FinanceDude
Doesn't the NAV of mutual funds in equity funds in general "plummet" in a down market??
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Well, yeah, but in an up market the NAV increase can make up for the drop caused by a dividend distribution.
In a market that's down 10%, something paying a 12% dividend might see a 22% decline in NAV or close to it. Ouch! I suppose it would make for some nice tax loss selling, though, since the taxed dividends are added to your cost basis.
Come to think of it, this might be a good fund for people looking not only to get gains capped at 15%, but also to create losses to offset capital gains.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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Re: ALPINE DYNAMIC DIVIDEND FUND
03-15-2007, 10:21 AM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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Re: ALPINE DYNAMIC DIVIDEND FUND
Quote:
Originally Posted by ziggy29
Well, yeah, but in an up market the NAV increase can make up for the drop caused by a dividend distribution.
In a market that's down 10%, something paying a 12% dividend might see a 22% decline in NAV or close to it. Ouch! I suppose it would make for some nice tax loss selling, though, since the taxed dividends are added to your cost basis.
Come to think of it, this might be a good fund for people looking not only to get gains capped at 15%, but also to create losses to offset capital gains.
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Hard to find a bond paying 13%.............
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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Re: ALPINE DYNAMIC DIVIDEND FUND
03-15-2007, 10:25 AM
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#12
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Thinks s/he gets paid by the post
Join Date: Feb 2005
Posts: 2,032
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Re: ALPINE DYNAMIC DIVIDEND FUND
Oh, I can find you plenty of bonds paying 13%, can't promise you your principal back though
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Re: ALPINE DYNAMIC DIVIDEND FUND
03-15-2007, 11:30 AM
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#13
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Thinks s/he gets paid by the post
Join Date: Apr 2006
Posts: 1,490
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Re: ALPINE DYNAMIC DIVIDEND FUND
"dynamic" suggests both up and down.
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Re: ALPINE DYNAMIC DIVIDEND FUND
03-15-2007, 11:39 AM
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#14
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Recycles dryer sheets
Join Date: May 2006
Posts: 133
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Re: ALPINE DYNAMIC DIVIDEND FUND
Quote:
Originally Posted by FinanceDude
Doesn't the NAV of mutual funds in equity funds in general "plummet" in a down market??
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The fund does have a short history. I think it started up in Oct of 2003. However, the price fell about 2.9% on Feb 26 this year - the day of the 400+ point drop in the Dow. Then, on Feb 27, it paid a 7 cent dividend.
If you look at the price history, it has been pretty consisently on the rise. I certainly agree that the current yield would be difficult to maintain, but, to me, it is worth monitoring for a time to see if it is something I might want to put 5-10% in after I retire. Don't need the income now.
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