A coating composition is produced by forming an aqueous dispersion of a crosslinking agent and a resin that comprises the reaction product of an alkyd polymer, an optional surfalkyd, diacetone acrylamide, another acrylate monomer and optionally aromatic monomers wherein the reaction product is neutralized with either ammonia or an amine. A coating of the aqueous dispersion on wood exhibits at least some of the following desired properties: rapid dry time, good tannin blocking, good resistance to picking up dirt, good hot box stability and good exterior durability. Additionally, the inventive coatings appear to provide improved crosslinking compared to coatings comprising resins not neutralized with an amine or ammonia and/or not containing a surfalkyd.