Alpine Global Dynamic Dividend Fund Seeks High Dividend Yield

The Alpine Global Dynamic Dividend Fund (AGD) is a new closed-end fund (IPO was July 26, 2006 at $20) that provides dividend income. Currently AGD pays a 15 cent monthly dividend for an annual dividend yield of 8.48 percent ($0.60/$21.23).The fund states that more than 50 percent of its dividends may qualify for the reduced Federal income tax rates.

To achieve this very high yield the fund owns dividend-paying stocks plus preferred stocks, REITs, exchange-traded funds and convertibles. AGD buys well-managed companies whose prices are down and yields are up, buys companies with steadily increasing dividends and trades stocks just to capture their regular and special one-time dividends.

As of October 23, 2006 AGD is trading above its net asset value (NAV) of $19.80. Buy AGD when its price falls below its NAV.

One negative for the fund is the hefty 1.28 percent annual expense ratio which will reduce your total return.

See AGD's Web site for more information about the fund.

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Posted October 23, 2006.