Ex-Dividend Date Analysis: Virtus Dividend, Interest & Premium Strategy Fund (Dec 11, 2025)

Introduction

On December 11, 2025, the Virtus Dividend, Interest & Premium Strategy Fund (commonly known by its ticker symbol NFJ) will trade ex-dividend. The fund has declared a cash dividend of $0.305 per share. As a closed-end fund, it follows a consistent dividend strategy that prioritizes regular income distribution to shareholders, often leveraging interest and preferred stock income sources. While this aligns with broader market trends in income-oriented strategies, the ex-dividend event will have a measurable impact on the stock’s price movement, especially in light of historical performance data.

The market heading into this ex-dividend date is cautious, with fixed income markets showing signs of volatility and equity markets experiencing sector-specific underperformance. This context is important when evaluating how the ex-dividend price adjustment might be perceived by both long-term and short-term investors.

Dividend Overview and Context

The key metrics to consider in this dividend announcement are:

• Cash Dividend per Share (DPS): $0.305
• Ex-Dividend Date: 2025-12-11

When a stock goes ex-dividend, its price typically drops by roughly the amount of the dividend. This is not a loss, but a transfer of value from the stock to the shareholder. For a stock trading in a relatively stable or sideways range, this event can create a short-term trading opportunity or risk, depending on the investor's position and timing.

Backtest Analysis

The backtest analysis of NFJ’s historical performance around ex-dividend dates reveals some critical insights for investors. The backtest spanned a multi-year period and assessed price recovery patterns, return volatility, and reinvestment efficiency.

Key findings include:

• Average dividend recovery duration: 14 days
• 15-day recovery probability: 17%
• Implication: This suggests that the stock price tends to take about two weeks to recover post-dividend, but the likelihood of recovery within 15 days is relatively low.

These results highlight the importance of managing expectations post-ex-dividend and considering the broader time horizon for value realization.

Driver Analysis and Implications

NFJ’s ability to sustain its $0.305 cash dividend is supported by its latest financial report data:

• Total Revenue: $15,824,000
• Net Income: $17,873,000
• Total Basic EPS: $0.19

The fund appears to have a solid operating margin, with total expenses at $6,155,000 and operating income at $9,669,000. These figures suggest a healthy cash flow base, although the payout ratio (dividend per share divided by EPS) appears to be elevated relative to typical income funds. This reinforces the importance of monitoring future earnings and expense trends to ensure the sustainability of the current payout level.

On a macroeconomic level, rising interest rates and shifting investor preferences toward fixed income alternatives are influencing the performance of income funds. NFJ’s strategy, which includes a focus on preferred securities and high-yield debt, is well-positioned in this environment, but it also introduces volatility that investors must manage.

Investment Strategies and Recommendations

Given the historical performance and financial position of NFJ, here are two actionable strategies for investors:

• Short-Term Strategy: Investors holding NFJ who are not seeking the dividend should consider selling before the ex-dividend date to avoid the price drop. Alternatively, short-term traders could capitalize on the predictable price drop by using options or other hedging tools.

• Long-Term Strategy: For income-focused investors, NFJ remains a compelling option given its yield and consistent payouts. However, in light of the low probability of quick price recovery post-ex-dividend, investors should consider holding for longer periods or using dollar-cost averaging to smooth out volatility.

Conclusion & Outlook

The ex-dividend date of December 11, 2025 is a key event for Virtus Dividend, Interest & Premium Strategy Fund investors. While the fund maintains a robust cash flow, historical data suggests that short-term price recovery is unlikely after the ex-dividend adjustment. This reinforces the need for a strategic, long-term approach for those who rely on NFJ for income.

Looking ahead, investors should keep an eye on the fund’s upcoming earnings report and any further dividend announcements, which will provide additional insights into the fund’s sustainability and market positioning.