Virtus Convertible & Income Fund II (NCZ) Stock

Virtus Convertible & Income Fund II's preferred shares NCZ-A, trading at $21.11 with a 6.55% yield, are rated “A” by Fitch, making them superior to most non-CEF preferred stocks. Despite not being investment-grade, NCZ-A's credit quality is exceptional due to stringent regulatory leverage requirements under the 1940 Securities Act. NCZ-A offers better credibility and yield compared to other preferred stocks like EPR-G and KIM-L, presenting a unique “Alpha” opportunity.

The Virtus Convertible & Income Fund II offers an attractive 11.39% yield, outperforming many peers and appealing to income-focused investors despite potential sustainability concerns. The fund's recent performance has been strong, with a 15.75% rise in share price in six months, slightly outpacing the S&P 500 Index. The fund may have taken a risk-off position due to July's market volatility, as its cash equivalent position increased to more than 5% of net assets.

HARTFORD, Conn.--(BUSINESS WIRE)--Virtus Convertible & Income Fund II (NYSE: NCZ) announced today that it has declared a $0.34375 per share cash distribution payable on September 30, 2024 to Series A cumulative preferred shareholders of record on September 13, 2024. The Series A Cumulative Preferred Shares, which trade on the New York Stock Exchange under the symbol NCZ PR A, are rated “A” by Fitch Ratings and have an annual dividend rate of $1.375 per share. The 4,360,000 Series A Cumulati.

At my CEF Insider service, we started 2024 expecting stocks to rise about 10% to 15% this year. Well, we're well within that range now: the S&P 500 is up just under 14% in 2024, as of this writing.

HARTFORD, Conn.--(BUSINESS WIRE)--Virtus Convertible & Income Fund II (NYSE: NCZ) announced today that it has declared a $0.34375 per share cash distribution payable on June 28, 2024 to Series A cumulative preferred shareholders of record on June 13, 2024. The Series A Cumulative Preferred Shares, which trade on the New York Stock Exchange under the symbol NCZ PR A, are rated “A” by Fitch Ratings and have an annual dividend rate of $1.375 per share. The 4,360,000 Series A Cumulative Preferr.

The Virtus Convertible & Income Fund II is a closed-end fund that invests in a mix of convertible bonds, common stock, and fixed-income securities. With a 12.59% yield, it offers an appealing option compared to other assets. The fund's portfolio is strong, with many of the companies experiencing substantial growth since issuing their convertible bonds.

The Virtus Convertible & Income Fund II aims to provide income-focused investors with the potential for capital appreciation through a combination of convertible securities and junk bonds. The fund has underperformed the S&P 500 Index over the past three years, but taking distributions into account improves its performance. The fund's portfolio consists of convertible securities and junk bonds, with a focus on companies that have resolved past financial issues. However, the fund's distribution has been declining over time.