Virtus Dividend Interest & Premium Strategy Fund (NFJ) Stock

Virtus Dividend, Interest & Premium Strategy Fund trades at a 13.82% discount to NAV, higher than its historical averages, making it an attractive buy. The fund invests in quality dividend-paying equities and convertible bonds, while also selling covered calls, offering a 9.41% forward yield. Activist investors Saba Capital and Karpus hold significant positions, with recent distribution increases aimed at enhancing shareholder value and reducing the discount.

HARTFORD, Conn.--(BUSINESS WIRE)--Virtus Dividend, Interest & Premium Strategy Fund (NYSE: NFJ) today announced the following quarterly distributions: Ticker Amount of Distribution Ex-Date/Record Date Payable Date NFJ $0.305 December 12, 2024 December 30, 2024 NFJ $0.305 March 13, 2025 March 28, 2025 Under the terms of its Managed Distribution Plan, the Fund will seek to maintain a consistent distribution level that may be paid in part or in full, from net investment income and realized cap.

NFJ's performance continues to be unimpressive in 2024, though the value-oriented portfolio could have a brighter future. The fund's discount has narrowed since our last update, pushing it to trade closer to the level of its longer-term average. Though, some good news is that the fund has increased its distribution since our last update, and Saba Capital Management has also started a position.

The Virtus Dividend, Interest & Premium Strategy Fund uses a combination of convertible securities and dividend-paying common stock to generate income. The fund has a higher current yield than its peers, but its performance over the past three years has been disappointing. The fund has underperformed its peers by a considerable margin, but its distributions have resulted in a total return of 15.74% over the trailing three-year period.