The abrdn Global Dynamic Dividend Fund offers a high yield of 12.94%, making it attractive for income-seeking investors amidst inflation concerns. The fund has a considerably higher yield than most of its peers, but the distribution was fully covered in the most recent year. The fund's increasing exposure to U.S. equities is a questionable decision given high domestic valuations and lower yields than available abroad.
The abrdn Global Dynamic Dividend Fund offers an incredibly high yield for an equity fund, which may entice some investors. The fund has failed to match the performance of the S&P 500 Index or the MSCI World Index over the past three months, even when we consider the distributions. The fund claims to invest at least 40% of its assets internationally, but it is currently below that and its international diversification appears to be weakening.
The abrdn Global Dynamic Dividend Fund focuses on providing income-focused investors exposure to equity markets to protect against inflation. The fund offers an attractive 8.13% yield, but underperforms peers in terms of yield and share price performance. The fund invests primarily in common stocks, but it is heavily weighted to the United States. This could be a risk right now.
PHILADELPHIA, PA / ACCESSWIRE / August 8, 2024 / abrdn Global Dynamic Dividend Fund (NYSE:AGD) and abrdn Total Dynamic Dividend Fund (NYSE:AOD) (collectively, the "Funds") each, a closed-end management investment company, announced today its Board of Trustees (each a "Board" and collectively, the "Boards") have each approved the implementation of a managed distribution policy which will pay monthly, 12% of the average daily NAV for the previous month as of the month-end prior to declaration ("Managed Distribution Policy"). The new Managed Distribution Policy will commence with the distributions payable on August 30, 2024, to all shareholders of record as of August 23, 2024 (ex-dividend date August 23, 2024).
The abrdn Global Dynamic Dividend Fund aims to provide investors with high current dividend income, with a focus on qualified dividend income. AGD has performed poorly on both an absolute basis and historical basis relative to global equity capitalization weighted index funds. AGD has a very high total annual operating expense ratio of 1.16%.
Like most other closed end funds we have covered on this platform, this one too aims to provide high current income to its unitholders. Unlike several of them though, this fund is disciplined in its payout. We explore this fund and provide our thoughts.