The Calamos Global Total Return Fund (CGO) offers geographic diversification and a high distribution yield of 9.15%. However, the fund has underperformed major equity indices, with a negative return of 10.36% over the past three years. It invests in a combination of equities and bonds but has been disappointing compared to comparable index funds. The fund has failed to cover its distribution over the past two years and may be at risk of reducing its payout. It is currently trading at a discount to net asset value but is more expensive than its recent average. The fund's portfolio is well-diversified, with 51.8% of assets invested in the United States. It also holds positions in companies such as NVIDIA, Eli Lilly, and Apple. The fund employs leverage, with leveraged assets comprising 31.71% of its portfolio. The fund pays a monthly distribution of $0.08 per share, giving it a yield of 9.15%. However, it has failed to cover its distribution for two consecutive years. The fund's net asset value is $11.37 per share, but it trades at $10.53, representing a 7.39% discount. Overall, the fund's historical performance is poor compared to common equities and convertible bonds, and it may not be a suitable investment option.
In contrast, the Schwab US Dividend Equity ETF (SCHD) has attracted over $4.7 billion in inflows this year, totaling over $64 billion in assets. SCHD has risen over 16% in 2024, with a total return of 88% over the past five years, yielding 3.39%. Investors looking for higher yields may consider the Cornerstone Strategic Value Fund (CLM) and the Cornerstone Total Return Fund (CRF). CLM boasts a forward yield of 16.1%, although it has dropped 27% over the past five years, with an expense ratio of 2.01%. On the other hand, CRF has a total return of 97.84% over five years and has risen over 36% in 2024, trading at a 22.6% premium to NAV. Both CLM and CRF are closed-end funds with diversified holdings in technology and other sectors, presenting potentially better yielding alternatives to SCHD.
Workers in America are doing well with a 3.9% unemployment rate, contradicting the idea of a recession. Blue-collar workers are experiencing increased hiring and demand. Closed-end funds (CEFs) offer large income streams with an average of 8.3% and are currently at an average 6.7% discount to net asset value (NAV). The Calamos Convertible Opportunities and Income Fund (CHI) trades at a 15.9% premium, while the Virtus Equity & Convertible Income Fund (NIE) trades at a 10% discount. NIE has outperformed CHI in terms of total returns, offering an 8.9% dividend yield and strong gains. The strong labor market suggests that stocks will continue to rise.