Replies to post #893 on insane dividends

[bar1080]

I've been on stock boards since Yahoo in '97 and then RB always... ALWAYS... bashing pennies and bad accounting, especially the Chinese flavor. At times I've provided information to the SEC.

I'm pretty unique in that I ONLY bash stocks!

I follow a few simple rules that have worked Buffett-like for years: Most of my stock money is in Index Funds, I own some individual blue chips for tax reasons (I can control when to take the very rare losses). Much of my money has been in bonds which have performed better than stocks since 2000. I sell stocks only for tax reasons. I live well; my broker doesn't!

Above all I'm smart and experienced enough to know that I can't beat the S&P, and that most who say they can, are liars or they simply don't know how they've done!

Can you imagine how popular I was as the tech bubble roared in '99 spouting such? I even suggested looking at U.S. EE Savings Bonds when they paid 6% (7.5% before that) in the mid-90s. I still have some from that time.

Read my old posts, you'll find utter consistency.

[bar1080]

Question #1: Of what use is your info about special dividends?

You've said, probably accurately:
"Some made a momentary spike then tanked. Some surprisingly just fell off the table after the cash was paid out (for a reason I can't quite grasp)."

Can one buy these stocks on the announcement and make money with the div? My gut is to say no. I moderate a board on a fund that tries to do that, Alpine Total Dynamic Div CEF (AOD) which uses the fancy term "dividend capture" for that process.

AOD's a dog in my opinion but it's the type of window-dressing garbage older penny players like... to the extent they have any retirement money. AOD is all about investment "engineering," employing arcane gimmicks to boost yield. Or the APPEARANCE of yield!

It pays a double digit distribution (monthly to appeal to old geezers with little income), but it has fallen from $20 at its IPO in 2007 to $4.13 now.

Remarkably it has some fans!