AOD Watch

Well, OK. The eurozone debt crisis is contained. The recession hit its nadir last year. Everything is blossoming forth like spring wildflowers on a Swiss mountain field. So why is Alpine Total Dynamic Dividend Fund (AOD) sticking with the same unimpressive yield for October, November and December?

	trend	sto	sto zone	pps	psar	macd	macd trend	ma20	ma200
AOD $5.51

The price has been inclining up all of September, and on Sept. 1, I speculated that traders expected the management to raise the dividend to a more competitive level.

Well, nailed that one -- not.

At one point AOD yielded more than 20%. The current yield is 11.96%, just a few points above the high-yield corporate debt fund JNK.

AOD has foreign-exchange risk -- JNK does not.

AOD has a history of volatility -- JNK, not so much.

Therefore, AOD is providing a really slim reward for the risk assumed by owners of its shares.

The company also failed to meet its goal of providing dividends that get favorable tax treatment.

Having said all of that, the price has not dropped (so far) in response to the announcement. So the tape suggests there's another tale to be told. We shall see.

Alpine's news release, in the pdf file format.


Disclaimer

Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.


No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

Abbreviations:

• pps - Person's Proprietary Signal.
• psar - Parabolic Stop and Reverse
• ma20 - 20-day moving average
• ma200 - 200-day moving average
• macd - Moving Average Convergence-Divergence
• sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways.
• sto: green for bull, red for bear.
• sto zone: green for overbought (80+), red for oversold (20-), yellow for neutral zone
• psar, pps, macd: green for bull mode, red for bear.
• macd trend: green for rising, yellow for sideways, red for falling.
neutral.
• ma20, ma200: green for above the average by more than 1%, red for below the average by more than 1%, yellow for within 1% either side of the average.