ASMLF - CHW: Very Impressive Recent Performance Could Result In Distribution Increase

2024-05-28 14:36:30 ET

Summary

• Calamos Global Dynamic Income Fund offers high-income and geographic diversification, without sacrificing equity exposure.
• The fund's distribution yield of 9.00% is lower than its peers, but it has delivered strong recent performance and total return.
• The fund's portfolio includes numerous low-yielding securities, so it relies more on capital gains than we might think.
• The fund has decreased its exposure to the American technology stocks recently, which might appeal to those investors seeking diversification.
• The fund trades at an enormous discount to net asset value and has grown its net asset value substantially over the past seven months, which may result in a distribution increase.

The Calamos Global Dynamic Income Fund ( CHW ) is a closed-end fund, or CEF, that is intended for investors who are seeking to earn a very high level of income from the assets in their portfolios while obtaining a certain amount of geographic diversification. I explained the importance of achieving geographic diversification in a few recent articles (such as this one ), and recent developments are making it even more important for investors to pursue this objective. The Calamos Global Dynamic Income Fund does not require that its investors sacrifice equity exposure to obtain a reasonably attractive yield either, so that is very nice considering that inflation continues to show its ugly head in the United States’s economic data.

As of the time of writing, the Calamos Global Dynamic Income Fund sports a 9.00% distribution yield. That is reasonable, but it is still quite a bit lower than the yields currently being offered by its peers:

For further details see: