Virtus Convertible & Income Fund II Announces Quarterly Distribution: 5.500% Series A Cumulative Preferred Shares

Rhea-AI Summary

Virtus Convertible & Income Fund II (NYSE: NCZ) has declared a quarterly cash distribution of $0.34375 per share for its Series A Cumulative Preferred Shares. The distribution is payable on December 31, 2024, to shareholders of record as of December 12, 2024. The preferred shares, trading under NCZ PR A, are rated 'A' by Fitch Ratings with an annual dividend rate of $1.375 per share. Originally issued at $25.00 per share in September 2018, the 4,360,000 preferred shares are now callable at the liquidation value of $25.00 plus accrued dividends.

Positive

• Maintained quarterly dividend payment of $0.34375 per preferred share
• Strong 'A' rating from Fitch Ratings

Negative

• None.

Insights

Financial Analyst

This quarterly preferred dividend announcement represents a routine distribution of $0.34375 per share for NCZ's Series A Cumulative Preferred Shares, maintaining its established 5.5% annual yield. The preferred shares, initially issued at $25.00, continue their regular payout schedule with no changes to the terms or rates. While this provides steady income for preferred shareholders, it's a standard corporate action that maintains the status quo rather than signaling any meaningful change in the fund's performance or strategy.

The callable nature of these shares at $25.00 plus accrued dividends presents a modest risk factor for investors seeking long-term income, though the fund's Fitch "A" rating suggests stable credit quality. The total annual distribution of $1.375 per share remains consistent with previous periods.

HARTFORD, Conn.--(BUSINESS WIRE)-- Virtus Convertible & Income Fund II (NYSE: NCZ) announced today that it has declared a $0.34375 per share cash distribution payable on December 31, 2024 to Series A cumulative preferred shareholders of record on December 12, 2024.

The Series A Cumulative Preferred Shares, which trade on the New York Stock Exchange under the symbol NCZ PR A, are rated “A” by Fitch Ratings and have an annual dividend rate of $1.375 per share. The 4,360,000 Series A Cumulative Preferred Shares were issued September 11, 2018 at $25.00 per share and pay distributions quarterly. This distribution represents the accrual period from October 1, 2024 through December 31, 2024. The Series A Cumulative Preferred Shares are now callable at any time at the liquidation value of $25.00 per share plus accrued dividends.

About the Fund

Virtus Convertible & Income Fund II has an investment objective to provide total return through a combination of capital appreciation and high current income. Virtus Investment Advisers, Inc. is the investment adviser to the fund and Voya Investment Management is its subadviser.

For more information on this fund, contact shareholder services at (866) 270-7788, by email at closedendfunds@virtus.com, or through the Closed-End Funds section on the web at virtus.com.

Fund Risks

An investment in a fund is subject to risk, including the risk of possible loss of principal. A fund’s shares may be worth less upon their sale than what an investor paid for them. Shares of closed-end funds may trade at a premium or discount to their net asset value. For more information about the fund’s investment objective and risks, please see the fund’s annual report. A copy of the fund’s most recent annual report may be obtained free of charge by contacting “Shareholder Services” as set forth at the end of this press release.

About Virtus Investment Partners, Inc.

Virtus Investment Partners (NYSE: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. We provide investment management products and services from our affiliated managers, each with a distinct investment style and autonomous investment process, as well as select subadvisers. Investment solutions are available across multiple disciplines and product types to meet a wide array of investor needs. Additional information about our firm, investment partners, and strategies is available at virtus.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241202740226/en/

For Further Information:

Shareholder Services

(866) 270-7788

closedendfunds@virtus.com

Source: Virtus Convertible & Income Fund II

FAQ

What is the dividend amount for NCZ Series A Preferred Shares in Q4 2024?

Virtus Convertible & Income Fund II will pay $0.34375 per share for Series A Preferred Shares for Q4 2024.

When is the ex-dividend date for NCZ Series A Preferred Shares Q4 2024 distribution?

Shareholders must be on record by December 12, 2024, to receive the Q4 2024 distribution.

What is the annual dividend rate for NCZ Series A Preferred Shares?

The annual dividend rate for NCZ Series A Preferred Shares is $1.375 per share.

What is the current Fitch rating for NCZ Series A Preferred Shares?

NCZ Series A Preferred Shares are rated 'A' by Fitch Ratings.