Dividends - At A Deep Discount And With An Upcoming Catalyst (Podcast)

| About: First Trust (FAV)

Summary

First Trust Dividend offers a diversified portfolio of dividend payers.

It trades at a 9% discount to NAV.

An activist, Bulldog, is likely to close that discount next quarter.

Rangeley Capital's portfolio managers Andrew Walker and Chris DeMuth Jr host a fifteen-minute podcast, which you can subscribe to on Apple's (AAPL) iTunes, Stitcher, or Soundcloud. If you missed the previous podcast episode, then please check out Coke Gets A Bailout? (KO, AAPL, CTCT, EIGI, GMCR).

In the current episode, we talk about a discounted closed-end fund that focuses on dividends - First Trust Dividend (NYSE:FAV). You can get it on sale for about 9% off with a potential upcoming catalyst. Here is what it owns:

Top 10 Holdings

Percent

General Electric (NYSE:GE)

4%

JPMorgan Chase (NYSE:JPM)

3%

Pfizer (NYSE:PFE)

3%

Wells Fargo (NYSE:WFC)

3%

Merck (NYSE:MRK)

2%

Intel (NASDAQ:INTC)

2%

Microsoft (NASDAQ:MSFT)

2%

Medtronic (NYSE:MDT)

2%

AT&T (NYSE:T)

2%

Philip Morris (NYSE:PM)

2%

Click to enlarge

For background reading, check out Investing With An Edge: First Trust Dividend And Income. We also discuss Apollo's (NYSE:APO) two new deals - Apollo Education (NASDAQ:APOL) (no relation) and ADT (NYSE:ADT). For background on the APOL acquisition, StW members should check this out.

Disclosure: I am/we are long FAV, APOL, CTCT, GMCR, ADT.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Chris DeMuth Jr and Andrew Walker are portfolio managers at Rangeley Capital. Rangeley invests with a margin of safety by buying securities at deep discounts to their intrinsic value and unlocking that value through corporate events. In order to maximize total returns for our investors, we reserve the right to make investment decisions regarding any security without further notification except where such notification is required by law.