The Dividend Machine You Can't Afford to Miss: Why AVK's $0.1172 Monthly Paycheck is a Buy Now Opportunity

Investors in search of steady income and the potential to amplify their returns should take note: the Advent Convertible & Income Fund (AVK) is offering a rare dual opportunity. With its rock-solid $0.1172 monthly dividend and a concurrent rights offering at a 90% of NAV discount, this closed-end fund (CEF) is positioned to deliver both income and growth—if you act fast. Let's break down why this is a must-consider play—and why the risks are manageable for those who understand the setup.

The Dividend Machine: Why $0.1172 a Month is a Win

First, the numbers: AVK has maintained its $0.1172 monthly dividend since October 2024, with the next payment due in October 2025. That's $1.406 in annualized income per share—a yield of ~6.5% based on its current price (as of June 2025). But here's the kicker: this isn't just a static payout. The fund's adviser, Advent, has structured its distribution policy to ensure sustainability, even if a portion is return of capital (ROC).

Why ROC isn't a red flag here: While some investors shy away from ROC components, AVK's NAV (net asset value) remains strong. The fund's closed-end structure allows it to reinvest in income-producing securities—convertibles, bonds, and other yield assets—while leveraging its adviser's expertise. The recent rights offering, priced at 90% of NAV, signals confidence: Advent is doubling down on its ability to grow assets and sustain distributions.

The Rights Offering: A Discount to Supercharge Your Stake

Now, the strategic kicker: AVK's rights offering lets existing shareholders buy new shares at a 90% discount to NAV—a rare deal in today's markets. Here's how it works:

• Subscription Ratio: 1 new share for every 3 rights held. Even if you own fewer than 3 shares, you can still subscribe for 1.
• Price: The final Subscription Price was set at $11.28 per share—90% of NAV—a clear value proposition.
• Deadline: Rights expired on October 17, 2024, but this is a model for future opportunities.

Why this matters: By participating, you're buying into a fund that's already generating income. The $108 million raised in the offering will fuel investments in convertible and income-producing securities—assets that drive the dividend machine. Plus, the fund's structure ensures that new shares don't dilute your existing stake's income potential, as distributions are based on shares held before the offering.

The Risks: Manageable, Not Dealbreakers

No investment is risk-free, but here's why AVK's risks are worth the reward:

1. Return of Capital Concerns: While a portion of distributions may be ROC, AVK's NAV has held steady. The adviser's focus on high-quality income assets—not speculative bets—keeps the fund grounded.
2. Market Volatility: Convertible securities can fluctuate, but they offer a hybrid of equity and bond-like features. Advent's track record in this space is proven.
3. Overvaluation: Check AVK's discount to NAV. If it's trading at a premium, pause—this offering was a one-time chance. But if it's at a discount now, it's a buy signal.

Why AVK is a Buy Now—Act Fast

This isn't just about dividends. It's about compounding your income. Here's the math:

• If you own 1,000 shares today, you're earning ~$117/month.
• Use the rights offering to buy additional shares at 90% of NAV, boosting your stake—and future dividends.
• With a closed-end structure, there's no dilution from constant share issuance, unlike ETFs or open-ended funds.

AVK's adviser, Advent, has a 20-year track record in convertibles and income strategies. This isn't a fly-by-night fund—it's a machine built to deliver.

Final Take: This is Your Moment

The $0.1172 monthly dividend isn't going anywhere—AVK's policy and the recent capital raise ensure it. The rights offering, while past for now, highlights the fund's confidence. If you're in the income game, this is a buy now scenario:

• Act fast on future rights offerings (they'll come again).
• Lock in the dividend yield while rates remain low.
• Ride Advent's expertise in convertibles and income assets.

Don't miss this chance to turn $0.1172 into a growing income stream. AVK isn't just a fund—it's a cashflow engine.

This is the play. This is the time. Don't let it slip away.