Comments on: Alpine Dynamic Dividend — My Dividend Generator

By: Invest In SEP-IRA Account With Fidelity Funds

Invest In SEP-IRA Account With Fidelity Funds — Tue, 28 Apr 2009 18:37:50 +0000

[...] 529 Rewards Card). In addition, I also have regular brokerage account with Fidelity, in which I buy Alpine Dynamic Dividend (ADVDX) every month without paying a commission. Having multiple accounts with one broker makes [...]

By: Dividend Beyond the Border | The Sun’s Financial Diary | A Personal Finance Blog on Saving and Investing

Tue, 06 Nov 2007 15:01:19 +0000

[...] One of my investment objectives is to generate passive income from investments, including dividend-paying stocks/ETFs. In the past couple of years, I have paid increasing attention to stocks that pay generous dividends. Using mostly DRIP stocks and exchange-traded funds, I have built a small portfolio aimed to generate passive income. Recently, I reshuffled that portion of my investments by eliminating two PowerShares dividend ETFs, PFM and PEY, and concentrated on using ADVDX as the main dividend generator. [...]

By: Sun

Sun — Tue, 07 Aug 2007 03:01:48 +0000

Taylor: I will take a look at the fund you mentioned. I didn’t know that fund, but with a yield at 6.7%, it sure looks interesting.

By: Taylor

Taylor — Mon, 06 Aug 2007 16:02:19 +0000

Not only do I own a slug of advdx, I’ve recently discovered a unique ‘income fund’(conservative allocation fund)for pre and retirees, IMSIX.

By: Sun

Sun — Sat, 28 Jul 2007 03:21:01 +0000

Brad: This is what I found from their annual report:

“For the six months ended April 30, 2007, ADVDX paid $0.98 in dividend income, with nearly all of the distribution estimated to be qualified for the maximum taxable rate of 15%.”

And when I check my 2006 1099 form, all the dividend distributions are qualified dividend, not capital gains. So even with the high turnover ratio, the taxes aren’t that bad to hold it in a taxable account. If you invest directly with the fund company, you will get the dividend reinvest option. The fund is worthless if the dividends are taken as cash.

By: Brad

Brad — Fri, 27 Jul 2007 13:40:35 +0000

Sun–

Thanks. It seems like Capital Gains would be a real problem too, with all of that turnover. Is that not the case? I looked into Alpine and it seems I could open a Roth IRA with them, so I’m exploring that option, especially if they have automatic dividend reinvestment.

By: Sun

Sun — Fri, 27 Jul 2007 02:05:46 +0000

Novice: Yes, if everybody starts to use the same technique, then the technique and the fund will get killed. However, I feel that the technique is the result of the fund’s investment objective, i.e., to generate maximum dividend. I don’t think that every fund will have the same objective, even for some income funds that invest in dividend paying stocks. Many fund take the buy-and-hold approach and invest in companies that have long dividend growth history. That investment objective may determine that they are going to use the same strategy ADVDX is using.

Brad: I bought the fund last year from Fidelity when they don’t charge commissions (now I believe they do). No particular reason. I just want to reduce the number of accounts I have (I usually buy mutual funds from the fund company directly). It’s in the taxable account since I want to have the flexibility to purchase more shares. However, most of the fund’s dividend distribution qualifies for a lower rate (15%). So it’s not too bad.

By: Brad

Brad — Thu, 26 Jul 2007 20:18:06 +0000

Sun, do you invest in this fund directly or through a broker? Is it in a taxable account? You’ve really piqued my interest here.

By: Novice

Novice — Thu, 26 Jul 2007 15:48:46 +0000

Sun, I am not sure whether I fully understand this fund. What if other funds try to copy the same strategy ( dividend capture & rotation) eventually they would start pushing the stocks higher before the planned buy and lower before planned sell.

By: Moneymonk

Moneymonk — Thu, 26 Jul 2007 15:40:49 +0000

You cannot go wrong with General Electric. It’s good to know there is useful information out there. Thanks for sharing. Seems like another good income stream

By: Jeremy

Jeremy — Thu, 26 Jul 2007 14:16:33 +0000

Thanks Sun, this is fantastic! I am all about investments with high yields or dividends. During the accumulation stage of investing it is amazing to see how quickly the reinvested dividends can grow. Then down the road when you need to start taking money you can begin taking the dividends as income.

I guess I’ll have to take a look at this one a bit and see if it has a place in my portfolio. Thanks!