Alpine Global Dynamic Dividend Fund (NYSE:AGD)

NetscribeETF (31.35) Submitted: 3/27/2007 8:50:43 AM : Start Price: $12.72 AGD Score: -84.60

The Alpine Global Dynamic Dividend Fund’s primary investment objective is seek high current dividend income, of which more than 50% qualifies for reduced Federal income tax rates. It seeks to achieve these goals by employing a research-driven approach to identifying companies globally with the potential for dividend increases and capital appreciation. Though the fund has about 22% of it’s holding in US countries it can invest up to 80% of its net assets in foreign companies. With about $125 million in net assets it has 65% and 10% of its fund in the European, Australia and New Zealand regions respectively. It offers a fair amount of diversification with the 113 companies and the top ten holding accounting for 20% of the total.
Its unique "dividend capture" strategy to optimize returns whereby it buys high-yield stocks with staggered quarterly payout dates is doing well with current market yield hovering around 8.3%. By doing so it captures six taxes advantaged quarterly payments over 12 months instead of just four. However its dividend capture strategies present it with inherent risks in the form of high turnover and brokerage fees that has made it trade at an premium of around 5% above its net asset value.
Industrial, financial and consumer non-cyclical account for the top three-sector allocation accounting for 30%, 20% and 16% respectively. Other bright areas are the energy sector that would benefit from the rising oil prices and the construction of new oilrigs. What attracts the fund most is its triple objective of seeking dividend income along with growth and value in the long term being a good pick for those with investors with low to medium risk appetite.