In a taxable account:

50% net after tax Income.......

(15% to pay all taxes)

(35% left for reinvestment into new shares)

http://passiveincomeinvestor.com/blog/index.php/2008/01/29/why-i-like-the-alpine-dynamic-dividend-fund-advdx/

t

Thanks Taylor.That pretty much says it all...

-wes

Taylor,

 Thanks for the link. I find the paragraph below to be an excellent summary of the use of ADVDX for income:

"Know what you own and why!

Keep in mind that ADVDX is an income fund NOT a capital appreciation fund. If you are looking for your share price to go through the roof this fund is not for you. The only reason one should own this fund is for The Income Stream. If one owns this fund for the right reasons (The Income Stream), short term price movements (short of Armageddon) are relatively meaningless. When the funds NAV falls to a low level your reinvested dividends are buying you more shares then at a higher level thereby growing your income faster. With this fund I look at market downturns as buying opportunities and not panic driven reasons to sell. This product is designed for those who would rather have ‘more income today’ than yesterday, in spite of the fact the value of the shares generating that growing income stream are higher or lower."

He also mentions what we have said over the past several years if held in a tax deferred account:

"If on the other hand you are already retired I recommend a 75%/25% split where you reinvest 25% of your dividends and take 75% as income. Doing so allows oneself a high income stream along with an inflation guard over time of compounding income!"

or to make reinvesting simple, take the quarterly dividends (.25 x 4= $1.00/share) as income and reinvest the other 8 months (.07 x 8= .56) to increase the dividend stream and account for inflation. This would make a 64%/36% split for  about a 9-10% income not including any extra payment in Decembers.

  Gene

So let's say they raise div taxes to 28%.

 =======================

In a taxable account:

One can still take 50% of the yield as income.

Take 28% of the yield and pay the taxes on the entire amount

Reinvest 22% of the yield into new shares

t

If one were to transpose the above figures to a tax deferred account, and reinvest 22% of the yield, the income goes uo to 11-12%.

Gene

Of course that 11-12% is before income tax....(in a tax deferred account)

But 'still'...........:-)

The views espoused in the article precisely reflects my thinking and strategy regarding ADVDX.

Jim7872