Replies to post #357 on Alpine Total Dynamic Dividend CEF (AOD)

[bar1080]

What the heck is Dividend Capture and does it work? Offhand it looks more like a gimmick to juice IPO sales of CEF shares and not one to to boost performance down the road. AOD and some of its sister funds have performed terribly this year compared with other dividend-focused funds.

Here is one explanation although it doesn't relate specifically to the way it's implemented by Alpine:

"...dividend capture strategy simply entails looking up the ex-dividend dates and purchasing stocks of various dividend-paying companies before the ex-dividend day and selling your holding once they start trading ex-dividend. Your goal is then to find another stock with a quickly approaching ex-dividend date, wash, rinse and repeat. Instead of getting four quarterly dividend payments, you might get eight quarterly dividend payments – or another way of saying this is that if you could find two stocks (as an example) that had different ex-dividend schedules and each had a 4% yield, your portfolio could potentially get an 8% yield by switching between these stocks on a regular basis."

But some investors think that strategy is more hype than sound investing.
http://wheredoesallmymoneygo.com/dividend-capture-strategy/

Looking for comments.