Calamos Dynamic Convertible and Income Fund (CCD) Stock

With dividend income pouring out of the market, too many investors fail to gather it in their accounts, or gather too little of it. The best way to gather income, is to gather as much of it as you can! We look at two fantastic income-producing funds.

Calamos Dynamic Convertible and Income Fund (CCD) achieved a 28.36% total return in the last year, outperforming the market's 25% return, despite an initial dip. The fund's long-term total return is 138.4% over 8 years, with a nearly flat price performance and a consistent 10% annual distribution yield. CCD trades at a 25% NAV premium, indicating high investor confidence but reducing the margin of safety and increasing risk if sentiment shifts.

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Calamos Dynamic Convertible and Income Fund focuses on generating total returns and income from convertible and high-yield bonds. CCD fund pays a high distribution rate of 12.0% of NAV, which is higher than its 5-year average annual returns of 9.4%. The fund is trading at a 13% premium to NAV, which may be vulnerable if the fund resets its distribution rate lower.

Take time and diligence when building your portfolio.

Calamos Dynamic Convertible and Income Fund aims to deliver a combination of capital appreciation and income by investing in convertible and high-yield fixed income securities. CCD carries a high management fee and has underperformed passive low-fee products historically. The fund is currently trading at a premium to NAV, which I do not believe is warranted.

CCD, a high beta equity Closed-End Fund, has experienced a significant decline since our last rating. CCD primarily focuses on convertible debt, with equity prices being the main driver of its performance. The high premium to NAV that was previously a concern has significantly decreased, making the fund now trade near its NAV. This is seen as appropriate.

The Calamos Dynamic Convertible and Income Fund offers a 12.92% current yield, making it attractive for income-focused investors. The CCD closed-end fund's performance has been disappointing, with a decline of 15.33% since early January and a much larger price decline since the start of 2022. The fund invests in a combination of convertible securities and high-yield bonds, with a focus on total return through capital appreciation and income.