Calamos Convertible and High Income Announces $0.10 Dividend as Ex-Dividend Date Looms on 2025-10-15

Investor Insight: Understanding the Market Impact of the Upcoming Dividend Event

Introduction

Calamos Convertible and High Income (CHY) continues to uphold a consistent dividend policy, signaling a $0.10 per share cash dividend for shareholders of record as of October 15, 2025. This announcement aligns with the fund’s strategy to generate income for investors, particularly in a market environment characterized by rising interest rates and shifting fixed-income valuations. With its ex-dividend date set for the same day as the record date, investors should be prepared for immediate price adjustments.

Dividend Overview and Context

The cash dividend of $0.10 per share reflects CHY’s commitment to returning capital to investors, though it stands in contrast to the fund’s recent financial performance. Despite the dividend payment, CHY reported a net loss of $15.58 million for the latest reporting period, with negative earnings of -$0.1969 per share. These figures suggest a high payout relative to its earnings, typical for a closed-end fund that leverages portfolio performance and market conditions to support distributions.

The ex-dividend date on October 15 will likely result in an immediate downward price adjustment of approximately $0.10, as the stock trades ex-dividend and the share price drops to reflect the payout. Investors should also consider this timing for tax implications and portfolio turnover.

Backtest Analysis

A recent backtest of CHY’s historical dividend behavior reveals valuable insights for investors. The average dividend recovery duration is 2.61 days, with an 89% probability of full price recovery within 15 days after the ex-dividend date. This rapid rebound suggests strong market confidence and efficient price adjustment, minimizing the risk of prolonged downside following the payout.

Driver Analysis and Implications

CHY’s ability to sustain dividend payments despite reporting a net loss can be attributed to its structure as a closed-end fund and its reliance on portfolio gains and leverage. The fund’s operating income and total revenue, while positive, were insufficient to cover expenses, resulting in a net loss. However, distributions are often supported through a combination of income and realized gains from its convertible securities and high-income strategies.

On a macroeconomic level, CHY’s dividend behavior reflects the broader trend of income-focused funds maintaining payouts even in volatile or declining environments. Investors should monitor the fund’s future earnings releases and portfolio performance for signs of sustainability.

Investment Strategies and Recommendations

For short-term traders, the ex-dividend date presents a known price catalyst. Given the strong historical recovery pattern, entry points could be considered within the first few days post-ex-dividend date. For long-term investors, it’s crucial to evaluate CHY’s ability to sustain these payouts in the context of interest rate changes and portfolio performance.

Reinvesting the dividend quickly might also offer compounding benefits, especially if the fund continues to demonstrate strong price resilience.

Conclusion & Outlook

Calamos Convertible and High Income’s $0.10 per share dividend with an ex-dividend date on October 15, 2025, reinforces the fund’s income-focused approach. Despite its recent financial loss, the historical price rebound pattern suggests the market remains supportive of the fund’s strategy. Investors should continue to monitor CHY’s upcoming earnings report and evaluate whether the payout is likely to be maintained in the long term.