Alpine Total Dynamic Dividend Fund (NYSE:AOD)

Zaneyone (< 20) Submitted: 6/30/2010 1:22:55 PM : Start Price: $4.08 AOD Score: -24.01

Value Alert! Alpine's Dynamic Total Dividend Fund is an Exchange Traded Fund (ETF) that merits your immediate attention. Because of some fleeting bad press from a Wells Notice, a short seller who thinks ETF prices should not fluctuate (hello?) and a temporary dividend reduction due mostly to the recent devaluation of the Euro which compressed the value of the underlying stocks AOD holds to collect the dividends, you can now buy this high yielding ETF at bargain basement prices.&lt;br /&gt;&lt;br /&gt;First of all, the management of Alpine's Closed End Fund AOD had already let us know 32 days in advance there would be a significant dividend cut which always means a 50% drop in yield. At today's price $4.89, the yield is 13.70%. Every rational investor knows if you invest in the stock market Stocks and ETF values will fluctuate, there is no genuine cause for alarm here that I can find. I have been researching and investing in Stocks since 1989. Dear Investors the sky is not falling, despite what Chicken Little squawked (Mr. Short Seller with a typewriter).&lt;br /&gt;&lt;br /&gt;AOD proved itself over the years by bouncing back from a huge market and price downturns including the recent financial crisis where the market and AOD bottomed in March of 2009. AOD's manager invests in European stocks because that is where the highest yielding dividend stocks are located. Directly from Alpine's Management via their full disclosure webinar for their investors they had not invested in British Petroleum (BP) which was crushed by the market due to the oil spill nightmare in the Gulf of Mexico.&lt;br /&gt;&lt;br /&gt;The bottom line is all is well, the bad news has passed. The massive volume spike this week indicates capitulation and a true bottom, so this official buy recommendation is only after the first day of price rebound from the bottom ($5.16 is a 2 year low, but I cannot guarantee it bottomed yet only that it will). Here is rational (Disclosure I do not own this ETF) summary on the buy rating:&lt;br /&gt;&lt;br /&gt; &lt;br /&gt;&lt;br /&gt;AOD has a strong and steady record of consistent monthly payouts of 12 cents per share from January 2007 to June 2010 + bonus payouts! The bad news is now officially history, refocus and look forward to a 5 &#189; cent payout every month.&lt;br /&gt;&lt;br /&gt;&lt;br /&gt;The current yield of close to 13.7% is in itself a strong catalyst that will attract new buyers. In addition, the smart money crowd of value investors, high yield investors and mutual fund managers will soon pounce like hungry tigers to support this ETF because of the outstanding value created by panicked investors. Now you can look forward to capital appreciation too.&lt;br /&gt;&lt;br /&gt; &lt;br /&gt;&lt;br /&gt;AOD's management uses an accelerated dividend strategy to earn 6 dividend payouts per year rather than the usual four. It is actively managed intelligently, for example investors had more than 30 days notice of this recent dividend reduction a first for AOD.&lt;br /&gt;&lt;br /&gt; &lt;br /&gt;&lt;br /&gt;The management also is looks forward and strategically plans by buying companies that will soon be increasing their stock dividend before they announce. This is widely known catalyst proven to attract new investors, which in turn causes price appreciation.&lt;br /&gt;&lt;br /&gt; &lt;br /&gt;&lt;br /&gt;High yielding dividend stocks provide an extra margin of safety in down markets, the dividend will just keep attracting buyers and simple the fact that more holders are income investors that hold and reinvest their dividends. &lt;br /&gt;&lt;br /&gt; &lt;br /&gt;&lt;br /&gt;Instant diversification is a good thing. The recent quarterly report from Alpine's Closed End Funds shows that this fund is a basket of many well known and high quality companies. Of course, they pay dividends! One look and you will see for yourself (always do your own due diligence). This is a must see for all, especially for skeptics. How can a hundred high quality stocks all go to zero?&lt;br /&gt;&lt;br /&gt; &lt;br /&gt;&lt;br /&gt;Attention retirees and income investors: AOD provides a monthly dividend payout. $100,000 invested will yield $12,790 every year. Better if you reinvest the dividends too. Compared to a five year CD at 3% which would yield about $3250 per year. From 2000 to 2009 S&amp;P 500 has returned (-1.19) in comparison. The rate of inflation is alarmingly high even though the government statistics are manipulated as evidenced by silver and gold's ten year chart. &lt;br /&gt;&lt;br /&gt; &lt;br /&gt;&lt;br /&gt;Focus on the one &amp; two year Japanese Candle Stick Chart (widely known as the most revealing of all charts by Wall Street insiders, line charts are nearly useless in comparison) notice the strong bounce backs from the lows. The temporary panic is now history buy after the day of upward price movement (safe is good). From each bounce back investors gained over 100% from purchases made at lows, plus the dividend appreciation.&lt;br /&gt;&lt;br /&gt;Folks this is the best entry point in 2010 you are likely to see. Dividend cash paid monthly, low risk and a healthy capital gain will be yours.&lt;br /&gt;&lt;br /&gt;