Virtus Dividend, Interest & Premium Strategy Fund Declares Distribution and Discloses Sources of Distribution - Section 19(a) Notice

Rhea-AI Summary

On June 7, 2022, the Virtus Dividend, Interest & Premium Strategy Fund (NYSE: NFJ) announced a quarterly distribution of $0.245 per share. The ex-date for this distribution is September 9, 2022, with a record date of September 12, 2022 and a payable date of September 23, 2022. This distribution is part of the Fund's Managed Distribution Plan, which aims to maintain steady distribution levels. Shareholders should note that if the Fund's net investment income and capital gains are insufficient, the shortfall may be paid from the Fund's assets, potentially returning capital to shareholders.

Positive

• Quarterly distribution amount of $0.245 per share indicates consistent income for shareholders.
• The Fund aims to follow a Managed Distribution Plan, seeking stable distribution levels.

Negative

• Potential return of capital if net investment income and realized gains do not cover distribution.
• Fiscal YTD cumulative total return on NAV is down -9.55%, indicating adverse performance.

HARTFORD, Conn., June 7, 2022 /PRNewswire/ -- Virtus Dividend, Interest & Premium Strategy Fund (NYSE: NFJ), today announced the following quarterly distribution:

Ticker	Amount of Distribution	Ex-Date	Record Date	Payable Date
NFJ	$0.245	September 9, 2022	September 12, 2022	September 23, 2022

The Fund previously announced the following quarterly distribution on March 7, 2022:

Ticker	Amount of Distribution	Ex-Date	Record Date	Payable Date
NFJ	$0.245	June 10, 2022	June 13, 2022	June 24, 2022

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. Shareholders should note, however, that if the Fund's aggregate net investment income and net realized capital gains are less than the amount of the distribution level, the difference will be distributed from the Fund's assets and will constitute a return of the shareholder's capital. You should not draw any conclusions about the Fund's investment performance from the amount of this distribution or from the terms of the Fund's Managed Distribution Plan.

The Fund provided this estimate of the sources of the distributions:

Distribution Estimates	June 2022 (QTD)			Fiscal Year-to-Date (YTD)(1)
(Sources)	Per Share Amount	Percentage of Current Distribution		Per Share Amount	Percentage of Current Distribution
Net Investment Income	$             -	0.0%		$     0.012	2.5%
Net Realized Short-Term Capital Gains	$     0.125	51.1%		$     0.358	73.1%
Net Realized Long-Term Capital Gains	$     0.120	48.9%		$     0.120	24.4%
Return of Capital (or other Capital Source)	$             -	0.00%		$             -	0.00%
Total Distribution	$     0.245	100.0%		$     0.490	100.0%

(1)	Fiscal year started February 1, 2022

Information regarding the Fund's performance and distribution rates is set forth below. Please note that all performance figures are based on the Fund's NAV and not the market price of the Fund's shares. Performance figures are not meant to represent individual shareholder performance.

May 31, 2022
Average Annual Total Return on NAV for the 5-year period (2)		6.72%
Current Fiscal YTD Annualized Distribution Rate (3)		6.74%
Fiscal YTD Cumulative Total Return on NAV (4)		-9.55%
Fiscal YTD Cumulative Distribution Rate (5)		3.37%

(2)	Average Annual Total Return on NAV is the annual compound return for the five-year period.  It reflects the change in the Fund's NAV and reinvestment of all distributions.
(3)	Current Fiscal YTD Annualized Distribution Rate is the current distribution rate annualized as a percentage of the Fund's NAV at month end.
(4)	Fiscal YTD Cumulative Total Return on NAV is the percentage change in the Fund's NAV from the first day of the fiscal year to this month end, including distributions paid and assuming reinvestment of those distributions.
(5)	Fiscal YTD Cumulative Distribution Rate is the dollar value of distributions expected to be paid from the first day of the fiscal year through the next calendar quarter end as a percentage of the Fund's NAV at month end.

The amounts and sources of distributions reported in this notice are estimates only and are not being provided for tax reporting purposes. The actual amounts and sources of the distributions for tax purposes will depend on the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund or your broker will send you a Form 1099-DIV for the calendar year that will tell you what distributions to report for federal income tax purposes.

About the Fund

Virtus Dividend, Interest & Premium Strategy Fund is a diversified closed-end fund that seeks current income and gains, with long-term capital appreciation as a secondary objective. The Fund will generally invest approximately 75% of its total assets in equity securities and approximately 25% in convertible securities. The Fund will employ an option strategy of writing (selling) covered call options on equity securities held in the Fund. The equity portion of the Fund generally invests in U.S. equities and American depositary receipts (ADRs) with attractive quality characteristics, shareholder yield, and consistent financial output. Virtus Investment Advisers, Inc. is the investment adviser to the Fund and and NFJ Investment Group and Allianz Global Investors are its subadvisers.

For more information on the Fund, contact shareholder services at (800) 254-5197, by email at closedendfunds@virtus.com, or through the Closed-End Funds section of 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.

 

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SOURCE Virtus Dividend, Interest & Premium Strategy Fund

FAQ

What is the distribution amount for NFJ announced on June 7, 2022?

The distribution amount for NFJ is $0.245 per share.

When is the ex-date for the NFJ distribution?

The ex-date for the NFJ distribution is September 9, 2022.

What should shareholders know about the NFJ Managed Distribution Plan?

Shareholders should know that if the Fund's income and gains are less than the distribution amount, the difference may come from the Fund's assets, indicating a return of capital.

What is the fiscal YTD cumulative total return on NAV for NFJ?

The fiscal YTD cumulative total return on NAV for NFJ is -9.55%.

When will the NFJ distribution be payable?

The NFJ distribution will be payable on September 23, 2022.