CSQ: A Rare CEF Combo Of Capital Appreciation And Income Growth
Calamos Strategic Total Return Fund (CSQ) offers a nearly 7% dividend yield, with a history of consistent payouts and capital appreciation, making it a reliable income source. The fund's diversified portfolio of equities and income-oriented assets supports its strong performance and potential for future growth. CSQ uses leverage, which amplifies returns but poses risks, especially in high-interest-rate environments; however, potential rate cuts in 2025 could mitigate these risks.
CSQ And CII: Attractive Distributions With Solid Track Records
Closed-end funds often pay relatively higher distribution yields to investors, but it can come at the sacrifice of lower NAV over time. Today, we're looking at two funds that have been able to pay out attractive distribution rates but also have seen their NAVs higher now than at inception. I believe both funds are strong long-term investments, balancing out more modest distribution yields that can allow for NAV to trend flat or potentially appreciate over time, as we've seen.
CSQ: This High-Performing CEF Is A Good Choice For Domestic Exposure
The Calamos Strategic Total Return Fund offers a 6.98% yield, higher than most equity indices, and provides a viable income source for investors. Over the past decade, the fund has delivered a 267.61% total return, surpassing the S&P 500 Index's 207.73% return. The fund invests in common stocks, convertibles, and bonds, which provides it with options in the event of weak equity performance or rising interest rates.
CSQ: Top Performing Fund But Beware High Equity Allocation
CSQ fund offers a 7.4% forward distribution yield with a 10-year average annual return of 11.6%. CSQ's Portfolio consists of equities, convertible securities, and high-yield corporate bonds with a 30% leverage. My main concern against the CSQ fund is its high equity allocation when equity valuations are at cyclical highs.
CSQ: Impressive Track Record But Not Impressively Priced
Calamos Strategic Total Return Fund (CSQ) has performed well but continues to trade at a narrow discount. The fund's portfolio is heavily tilted towards equity securities, with still meaningful allocations to convertibles and high-yield bonds. CSQ pays a monthly distribution with a rate of 7.76%, and they recently just crossed over $20 of cumulative distributions paid since inception.
