Virtus Equity & Convertible Income Fund (NIE) Stock

HARTFORD, Conn.--(BUSINESS WIRE)--Virtus Equity & Convertible Income Fund (NYSE: NIE) today announced the following quarterly distributions: Ticker Amount of Distribution Ex-Date/Record Date Payable Date NIE $0.50 December 12, 2024 December 30, 2024 NIE $0.50 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 capital gains,.

Virtus Equity & Convertible Income Fund offers a high yield of 8.74%, which is higher than many other closed-end funds using similar strategies. The NIE closed-end fund's strategy includes investing in both equity and convertible securities, providing inflation protection and potential capital appreciation. The fund's portfolio has substantial exposure to the Magnificent 7, which makes it difficult to include in a portfolio that probably already has significant exposure to these stocks.

Virtus Equity & Convertible Income Fund invests in equities and convertible securities, with varying allocations between the two. The fund uses a covered call option strategy on 70% of the equity portion to enhance distributions and reduce portfolio risk. NIE has a high correlation with SPY due to its high exposure to infotech equities.

HARTFORD, Conn.--(BUSINESS WIRE)--Virtus Equity & Convertible Income Fund (NYSE: NIE) today announced the following quarterly distribution: Ticker Amount of Distribution Ex-Date Record Date Payable Date NIE $0.50 June 13, 2024 June 13, 2024 June 27, 2024 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 capital gains, or a combination thereof. Sharehold.

Virtus Equity & Convertible Income Fund aims to provide investors with an attractive level of income without sacrificing the upside potential of investing in equities. The NIE closed-end fund invests substantially in convertible securities, which offer higher yields than common equities and potential benefits if the company's stock becomes valuable. The NIE CEF's performance has been solid, with a 12.57% increase in share price since the previous article was published, and it has a reliable history of distributions.

The Virtus Equity & Convertible Income Fund is benefiting from its heavy exposure to mega-cap tech stocks, leading to a solid performance in 2023. The fund's discount has narrowed throughout the year, but it still remains at a fairly wide discount and doesn't necessarily represent a bargain at this time. NIE is a non-leveraged fund, which is a positive in a rising rate environment, but its performance wasn't materially better when put up against a leveraged peer in 2022.

Virtus Equity & Convertible Income Fund drops nearly 4% amidst broader market selloff. NIE relies on capital gains to cover its 10% annual distribution rate, which is challenging in the current high interest rate environment. NIE has outperformed the Morningstar US Moderate Aggressive Target Allocation benchmark but has not fully captured gains of its equity exposure.

It's been almost two years since stocks last hit all-time highs, and the S&P 500 is still sitting some 11% below the peak!

Virtus Equity & Convertible Income Fund offers a high level of income from equities, boasting a 10.08% yield compared to the S&P 500's 1.52%. The NIE closed-end fund has outperformed the S&P 500 Index on a total return basis since January 2023. The fund's performance has recently deteriorated due to market concerns about inflation and rising energy prices, but it still offers advantages such as convertible securities and call options.