7% Yield, -6% Discount, Monthly Payouts

This stock yields 7.07% and pays monthly. It's selling at a -6.4% discount to NAV - much deeper than its three- and five-year average discounts. Net assets rose 25% in its latest fiscal year, ending 10/31/20. This stock's main focus is on investing in convertible bonds, which comprised 84.8% of its portfolio, as of 11/30/20, followed by non-convertible corporate bonds, at 9.2%.

We began writing about the Calamos Dynamic Convertible And Income Fund (CCD) in July 2020. It has had quite ride since then, gaining 30% in price, and earning a total return of 34%, vs. 16.5% for the S&P. CCD is a CEF which "can invest in convertibles and other fixed income securities with the aim of generating a high level of total return through a combination of capital appreciation and income. To help generate income and attempt to achieve a more favorable reward/risk profile, the fund's investment team also has the flexibility to sell options." (CCD site)

Source: Seeking Alpha

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