Income Investing - Better than your CD
The closed end funds from Alpine have proven themselves to be incredible investments for the unsure, lazy, and current income focused investor. Which means they could find a home in pretty much any portfolio.
The primary selling point of the funds AOD and AGD is the high dividend which pays out monthly. The funds offer automatic reinvestment and yield around 10%. Even though they sell at a premium to the NAV this can be a positive thing for investors who can pick up a premium on the shares along with the 10% a year in dividends.
It's not worth your time to understand the dividend capture strategy they utilize just to understand the performance for a realtively safe investment. Why have your money in a savings, CD, or bond when this company has proven itself through AGD's performance and is offering a 10.8% yield in AOD.
250 shares automatically reinvested over five years at the current yield would be worth $12,118.67 at the end of the period.
The primary selling point of the funds AOD and AGD is the high dividend which pays out monthly. The funds offer automatic reinvestment and yield around 10%. Even though they sell at a premium to the NAV this can be a positive thing for investors who can pick up a premium on the shares along with the 10% a year in dividends.
It's not worth your time to understand the dividend capture strategy they utilize just to understand the performance for a realtively safe investment. Why have your money in a savings, CD, or bond when this company has proven itself through AGD's performance and is offering a 10.8% yield in AOD.
250 shares automatically reinvested over five years at the current yield would be worth $12,118.67 at the end of the period.
Labels: AGD, Alpine Funds, AOD, closed-end funds, income investing
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