Calamos Convertible and High Income Announces $0.10 Cash Dividend; Market Impact Expected on 2025-12-12

Introduction

Calamos Convertible and High Income (CHY) has a long-standing history of delivering regular dividends to its shareholders, aligning with the investment strategies typical for high-yield and convertible bond-focused funds. On 2025-12-12, the fund will go ex-dividend for a cash dividend of $0.10 per share. This payout continues the fund’s tradition of returning value to shareholders through cash distributions, albeit in a market environment that has seen increasing volatility and uncertainty in the fixed-income sector.

In the weeks leading up to the ex-dividend date, market participants have closely monitored CHY’s performance amid shifting interest rate expectations and credit market conditions. The fund’s ability to maintain a consistent cash dividend despite a challenging environment underscores its focus on income generation and risk management.

Dividend Overview and Context

The key metric to understand for investors is the ex-dividend date, which marks the first day a stock trades without the benefit of the upcoming dividend. On this date—2025-12-12—CHY will go ex-dividend, and the share price is likely to adjust downward by approximately $0.10, reflecting the payout of the cash dividend.

Investors should note that the fund does not issue a stock dividend in this announcement, so the adjustment will be purely in cash terms. For dividend-focused investors, this is a straightforward and predictable event.

Backtest Analysis

The historical performance of CHY around ex-dividend dates has been extensively analyzed. According to backtesting over a multi-year period, CHY exhibits a dividend recovery duration of just 2.9 days on average and has an 89% probability of recovery within 15 days post-ex-dividend date. This suggests that market participants quickly adjust to the dividend impact and that the share price tends to rebound efficiently.

The backtest assumed a reinvestment of dividends and a neutral market environment, with no assumptions made about macroeconomic shifts during the testing period. The high recovery probability and short duration indicate a strong market absorption of the dividend impact, supporting the idea that CHY’s dividend is valued and recognized swiftly by the market.

Driver Analysis and Implications

The latest financial report shows that CHY’s net income is negative at -$15.58 million, with basic earnings per share at -$0.1969. Despite this, the fund has maintained a consistent cash dividend. This implies that the dividend is not funded directly from current earnings but from other sources—possibly capital gains or unrealized appreciation.

The operating income stands at $7.08 million, suggesting that the fund’s income generation remains resilient, which is a positive signal for the sustainability of future distributions. However, the interest expense of $115.64 million is a significant factor, indicating the high leverage in the fund’s portfolio—common in convertible and high-yield strategies.

In the broader market context, the decision to maintain a dividend may reflect CHY’s confidence in its liquidity and portfolio structure, despite a challenging macroeconomic backdrop. Rising interest rates and credit spreads continue to pressure high-yield and convertible securities, but CHY’s strategy appears to be managing those risks effectively.

Investment Strategies and Recommendations

Given the strong historical performance and predictable rebound following ex-dividend dates, investors may consider the following strategies:

• Short-term traders could look to buy the stock close to the ex-dividend date and hold for 2–5 days, leveraging the typical 2.9-day recovery pattern.
• Dividend reinvestors might reinvest the $0.10 payout into CHY shares post-ex-dividend, capitalizing on potential lower entry points during the brief price pullback.
• Long-term investors should monitor the fund’s ability to maintain consistent dividends in a more challenging credit environment. A consistent payout amid negative earnings can signal strong liquidity or capital appreciation.

Investors should also stay alert for upcoming events, including any changes in the fund’s portfolio strategy or shifts in macroeconomic conditions that may affect its ability to sustain distributions.

Conclusion & Outlook

CHY’s $0.10 cash dividend, set to go ex-dividend on 2025-12-12, reflects the fund’s continued commitment to delivering income to shareholders. While the fund currently reports a negative net income, its operating income remains robust, and its historical price behavior post-dividend is encouraging for both short-term and long-term investors.

Looking ahead, the market will be watching for any changes in CHY’s portfolio performance and for the next earnings or dividend announcement, which will provide further insight into the fund’s strategy and resilience. For now, the ex-dividend event appears to be well-supported by the fund’s operational performance and historical market behavior.