CII's Upcoming Dividend Opportunity: Can the Pattern Continue?

BlackRock’s Enhanced Capital and Income Fund, Inc. (NYSE: CII) is set to go ex-dividend on February 13, 2026—just one week away. With a 0.141 per share dividend payment scheduled, investors are now watching closely to see whether history will repeat itself. The question isn’t just about collecting the dividend; it’s about understanding the broader price movement that often precedes these distributions, what market participants call a “Dividend Run.”

Understanding the Dividend Run Mechanism

Before diving into CII’s specific opportunity, it helps to understand why upcoming dividends create predictable market patterns. The mechanism is rooted in basic stock market economics. On the ex-dividend date, a stock typically drops by approximately the dividend amount—this is simply because new buyers are no longer entitled to that cash distribution. If a stock didn’t fall by the dividend amount, buyers would effectively be overpaying for the share.

But here’s the key insight: if a dividend-paying stock only fell on ex-dates and never recovered, those shares would theoretically decline to zero over time. That obviously wouldn’t make sense for companies that continuously earn profits and distribute them. This creates natural market pressure: ahead of each dividend, investors anticipate that value extraction, and stock prices tend to gradually appreciate in the weeks before the ex-date. This pre-dividend price movement is the “Dividend Run.”

Investors employ different timeframes and tactics to capture this phenomenon. Some buy and sell around specific target dates; others use dollar-cost averaging. A particularly popular approach among capital-gain-focused traders is to purchase shares roughly two weeks (approximately ten trading days) before the ex-dividend date, then sell the day before—the last day when buyers still expect to receive the upcoming dividend. This strategy aims to capture the price appreciation without actually holding through the distribution date.

CII’s Track Record: A Compelling Case Study

To evaluate whether CII might experience another dividend run, we can examine its recent performance across the last four dividend cycles. The data is instructive:

Historical Dividend Run Analysis:

• Ex-Date 01/20/26: 0.141 dividend | Two weeks prior: 23.30 | One day prior: 23.54 | Gain: +0.24
• Ex-Date 12/22/25: 0.506 dividend | Two weeks prior: 23.25 | One day prior: 23.94 | Gain: +0.69
• Ex-Date 12/03/25: 1.833 dividend | Two weeks prior: 23.68 | One day prior: 25.71 | Gain: +2.03
• Ex-Date 11/14/25: 0.141 dividend | Two weeks prior: 24.02 | One day prior: 23.71 | Loss: -0.31

Over these four dividend periods, the combined capital gains totaled +2.65—a figure that exceeds the sum of all four dividend payments (2.621 total). In three out of four instances, the two-week run-up captured positive returns. The data demonstrates that CII has consistently experienced pre-dividend price appreciation, though outcomes varied based on broader market conditions.

The Strategy Variables: Different Approaches for Different Investors

Not all dividend investors employ the same strategy. Some prefer to hold through the ex-date specifically to capture and receive the dividend income in their accounts. Others focus purely on the capital appreciation angle, exiting before the ex-date to lock in gains and avoiding the price adjustment that typically follows the ex-dividend date.

For those pursuing the capital-gain approach, the historical two-week window has proven particularly relevant for CII. However, it’s important to recognize that individual investor circumstances differ—tax implications, portfolio rebalancing needs, and risk tolerance all influence optimal timing.

The Upcoming Dividend Window: What’s Next for CII?

With CII’s upcoming dividend of 0.141 per share set to go ex-dividend on February 13, 2026, we’re now in a critical window. The ex-date is approximately one week away, placing us squarely within the timeframe where historical dividend run patterns have been most active.

Dividend Details:

• Dividend Amount: 0.141 per share
• Ex-Dividend Date: February 13, 2026
• Payment Date: February 27, 2026
• Dividend Frequency: Monthly
• Annualized Yield: 7.31%

For investors interested in exploring CII’s dividend history in greater depth, comprehensive records are readily available through the fund’s official channels.

Key Takeaway: History as a Guide, Not a Guarantee

Past dividend run patterns don’t guarantee future price movements—market conditions, broader economic factors, and investor sentiment all play significant roles. Nevertheless, CII’s consistent track record of pre-dividend price appreciation makes it a compelling name for income-focused investors and those seeking to combine dividend collection with capital appreciation strategies.

For those who track dividend-driven trading opportunities, CII warrants close attention during these final days before the ex-dividend date. The fund’s monthly distribution schedule and demonstrated pattern of price movement ahead of ex-dates position it as an interesting case study for dividend run investors navigating today’s market environment.