Over the next 10 years, I plan to start transitioning some of my growth funds into dividends funds.
CEFs recently got my attention, one specifically is CHI.
Calamos Convertible Opportunities and Income Fund Dividend
For reference, examples of my other considerations are:
RNP CCD BME QQQX SPXX BTO
(also considering KBWY, which is not a CEF)
My specific question about CHI is this:
Over the past 15 years, its payout has somewhat declined. There was a fairly brief time that it rose from 9 to 12 to 15 (cents), then "stable" (as far as anything is stable) for a long time at 9.5 (~10 years), then more recently down to 8 (cents).
My question is, under what condition might CHI increase its payout in the future? Or is a CEF like this prone to gradually declining payout over time? I've read how some CEFs are going since the 1920s, and they do sometimes merge with other funds. Also, CHI in particular uses some amount of leverage. So, there is risk, and if I have to consider a trend: CHI's payout has been in decline (but fairly slowly).
The balance I'll have to work with should be between $1M-$2M, so living off like a 2% yield might not be too realistic. But yields in the 4-6% range may be viable (as it would be supplemented with other incomes, like pension).
CHI in particular at PortfolioVisualizer only goes back to 2016 (unfortunate, since it's been around since 2002); not sure if there is an alternative to substitute to get a longer historical perspective.
But as an example, I did the following model: $1M, no dividend re-investment (since intent is to live off the dividends), between a broad index vs pure dividend picks vs mixed. The key is looking at the Annual Returns summary.
Thoughts on CHI, as maybe a 15% portion of an eventual dividend oriented portfolio for living off said dividends?