The Calamos Dynamic Convertible and Income Fund offers high current income and inflation protection by investing in convertible and fixed-income securities, yielding 10.87%. Despite its high yield, the fund's recent performance has been disappointing, largely due to its significant exposure to the underperforming technology sector. The fund's allocation to corporate bonds has increased slightly over the past few months, which is a smart decision, but it remains very heavily exposed to convertibles.
The Calamos Dynamic Convertible and Income Fund offers a 9.36% yield, higher than common equity and fixed-income indices but below the median yield of its peers. Despite a lower yield than some peers, the fund's consistent distribution and market confidence in its sustainability make it attractive for income-focused investors. The fund's 56.14% total return over fourteen months outperformed the S&P 500, driven by both share price appreciation and distributions.
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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.