Virtus Convertible & Income Fund Announces $0.136 Dividend – Market Impact on 2025-11-13

Introduction

Virtus Convertible & Income Fund (NCV) has once again demonstrated its commitment to consistent income generation by declaring a cash dividend of $0.136 per share. With an ex-dividend date set for November 13, 2025, investors are preparing for the expected price adjustment. NCV's dividend policy aligns with broader industry standards for closed-end funds, particularly those focused on convertible securities and income strategies. As interest rates stabilize and credit markets remain supportive, the fund’s ability to maintain its payout reflects strong operational performance in recent quarters.

Dividend Overview and Context

On November 13, 2025, the ex-dividend date for Virtus Convertible & Income Fund, the stock will trade without the value of the recently announced $0.136 cash dividend. This means that any investor purchasing shares on or after this date will not be entitled to the most recent dividend payment. The ex-dividend price drop is typically equal to the dividend amount, assuming no other market forces are at play.

Dividend yield, calculated as the annualized dividend divided by the current share price, remains a key metric for income-focused investors. A stable and predictable payout like NCV’s allows investors to model returns with greater accuracy, especially in volatile markets. With the fund reporting a strong net income of $19.59 million and basic earnings per share of $0.8672 in its latest report, the payout is supported by robust earnings performance.

Backtest Analysis

The backtest of NCV’s historical price behavior around ex-dividend dates reveals a strong and consistent recovery pattern. Typically, the fund recovers its dividend drop within an average of 4 days, with an 85% probability of recovery within 15 days after the ex-dividend date. This trend supports the idea that dividend distributions do not necessarily disrupt long-term price momentum, especially for a well-managed fund like NCV.

Driver Analysis and Implications

The dividend decision appears to be supported by the fund’s strong cash flow and net income figures. With total revenue of $11.56 million and operating income of $9.44 million in the latest period, Virtus Convertible & Income Fund has the financial capacity to maintain its dividend. The net income attributable to common shareholders of $19.59 million also suggests that earnings are being effectively translated into shareholder returns.

On a broader scale, the fund’s performance is influenced by macroeconomic conditions. In a low-yield environment, NCV’s ability to deliver consistent income is particularly valuable to income-oriented investors. The stable economic backdrop and supportive credit conditions are likely contributing to the fund’s continued confidence in its payout policy.

Investment Strategies and Recommendations

For short-term investors, the backtest results suggest potential for strategic trading around the ex-dividend date. Investors who purchase shares before the ex-dividend date may benefit from the upcoming dividend, while those who buy after November 13 can capitalize on the potential rebound in the fund’s share price.

Long-term investors should consider the fund’s consistent earnings and stable payout as a sign of management’s confidence in its asset allocation and income strategy. Reinvesting dividends can also compound returns over time, especially in a market where capital appreciation may lag behind dividend growth.

Conclusion & Outlook

Virtus Convertible & Income Fund’s $0.136 dividend for November 2025 is a strong indicator of its commitment to generating income for shareholders. The fund’s recent earnings and the historical recovery pattern of its share price support both short-term trading and long-term investment strategies. Investors should remain attentive to the next earnings release and any potential changes in the fund’s investment approach or macroeconomic environment that could affect future dividends.

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