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Virtus Dividend, Interest & Premium Strategy Fund Announces Distributions and Discloses Sources of Distribution – Section 19(a) Notice

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Virtus Dividend, Interest & Premium Strategy Fund (NYSE: NFJ) has announced its quarterly distribution plan under its Managed Distribution Plan. The fund aims to maintain consistent distribution levels that may be sourced from net investment income, realized capital gains, or a combination thereof.

The fund acknowledges that if aggregate net investment income and realized capital gains fall short of the distribution amount, the difference will be drawn from the fund's assets, resulting in a return of shareholder capital. The fund estimates it has distributed more than its income and capital gains, indicating that a portion of the distribution may represent a return of capital.

Virtus Dividend, Interest & Premium Strategy Fund (NYSE: NFJ) ha annunciato il suo piano di distribuzione trimestrale nell'ambito del suo Piano di Distribuzione Gestita. Il fondo mira a mantenere livelli di distribuzione costanti che possono derivare da reddito da investimenti netti, guadagni in conto capitale realizzati, o una combinazione di entrambi.

Il fondo riconosce che se il reddito netto da investimenti aggregato e i guadagni in conto capitale realizzati non raggiungono l'importo della distribuzione, la differenza sarà prelevata dagli attivi del fondo, comportando un ritorno del capitale per gli azionisti. Il fondo stima di aver distribuito più del proprio reddito e dei guadagni in conto capitale, indicando che una parte della distribuzione potrebbe rappresentare un ritorno di capitale.

Virtus Dividend, Interest & Premium Strategy Fund (NYSE: NFJ) ha anunciado su plan de distribución trimestral bajo su Plan de Distribución Gestionada. El fondo tiene como objetivo mantener niveles de distribución consistentes que pueden provenir de ingresos netos de inversiones, ganancias de capital realizadas, o una combinación de ambos.

El fondo reconoce que si los ingresos netos de inversiones agregados y las ganancias de capital realizadas no alcanzan la cantidad de distribución, la diferencia se tomará de los activos del fondo, resultando en un retorno del capital para los accionistas. El fondo estima que ha distribuido más de sus ingresos y ganancias de capital, indicando que una parte de la distribución puede representar un retorno de capital.

Virtus Dividend, Interest & Premium Strategy Fund (NYSE: NFJ)는 관리 배급 계획에 따라 분기별 배급 계획을 발표했습니다. 이 기금은 순 투자 수익, 실현된 자본 이익 또는 이 둘의 조합에서 발생할 수 있는 일관된 배급 수준을 유지하는 것을 목표로 하고 있습니다.

기금은 총 순 투자 수익과 실현된 자본 이익이 배급 금액에 미치지 못할 경우, 차액이 기금 자산에서 차감되어 주주 자본의 반환으로 이어질 것임을 인정합니다. 기금은 자신의 수익과 자본 이익보다 더 많은 금액을 배분했다고 추정하고 있으며, 이는 배급의 일부가 자본 반환을 나타낼 수 있음을 시사합니다.

Virtus Dividend, Interest & Premium Strategy Fund (NYSE: NFJ) a annoncé son plan de distribution trimestriel dans le cadre de son Plan de Distribution Géré. Le fonds vise à maintenir des niveaux de distribution cohérents qui peuvent provenir de revenus d'investissement nets, de gains en capital réalisés, ou d'une combinaison des deux.

Le fonds reconnaît que si les revenus d'investissement nets agrégés et les gains en capital réalisés sont inférieurs au montant de la distribution, la différence sera prélevée sur les actifs du fonds, entraînant un retour de capital pour les actionnaires. Le fonds estime avoir distribué plus de ses revenus et de ses gains en capital, ce qui indique qu'une partie de la distribution pourrait représenter un retour de capital.

Virtus Dividend, Interest & Premium Strategy Fund (NYSE: NFJ) hat seinen vierteljährlichen Verteilungsplan im Rahmen seines verwalteten Verteilungsplans bekannt gegeben. Der Fonds zielt darauf ab, konsistente Verteilungsniveaus aufrechtzuerhalten, die aus Nettoanlageerträgen, realisierten Kapitalgewinnen oder einer Kombination davon stammen können.

Der Fonds erkennt an, dass, wenn die aggregierten Nettoanlageerträge und realisierten Kapitalgewinne nicht ausreichen, um den Verteilungsbetrag zu decken, die Differenz aus den Vermögenswerten des Fonds entnommen wird, was zu einer Rückgabe des Aktionärskapitals führt. Der Fonds schätzt, dass er mehr als sein Einkommen und seine Kapitalgewinne verteilt hat, was darauf hindeutet, dass ein Teil der Verteilung eine Rückgabe von Kapital darstellen könnte.

Positive
  • Consistent distribution policy maintained
Negative
  • Distributions exceed income and capital gains
  • Return of shareholder capital required to maintain distribution level

HARTFORD, Conn.--(BUSINESS WIRE)-- 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

$0.305

June 12, 2025

June 27, 2025

The Fund previously announced the following quarterly distribution on November 20, 2024:

Ticker

Amount of Distribution

Ex-Date/Record Date

Payable Date

NFJ

$0.305

March 13, 2025

March 28, 2025

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 estimates that it has distributed more than its income and capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be confused with ‘yield’ or ‘income’.

The Fund provides this estimate of the sources of its distributions:

Distribution Estimates

March 2025 (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

$

0.045

14.7

%

$

0.045

14.7

%

Net Realized Short-Term Capital Gains

$

-

0.0

%

$

-

0.0

%

Net Realized Long-Term Capital Gains

$

0.052

17.1

%

$

0.052

17.1

%

Return of Capital (or other Capital Source)

$

0.208

68.2

%

$

0.208

68.2

%

Total Distribution

$

0.305

100.0

%

$

0.305

100.0

%

(1)

Fiscal year started February 1, 2025.

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 net asset value (NAV) and not the market price of the Fund’s shares. Performance figures are not meant to represent individual shareholder performance.

February 28, 2025

 

Average Annual Total Return on NAV for the 5-year period (2)

8.99

%

Annualized Current Distribution Rate (3)

8.53

%

Fiscal YTD Cumulative Total Return on NAV (4)

-0.83

%

Fiscal YTD Cumulative Distribution Rate (5)

2.13

%

 

(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)

Annualized Current 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 generally invests approximately 75% of its total assets in equity securities and approximately 25% in convertible securities. The Fund employs an option strategy of writing (selling) covered call options on equity securities held in the Fund. Virtus Investment Advisers, LLC, a registered investment adviser affiliated with Virtus Investment Partners, Inc., is the investment adviser to the Fund, and NFJ Investment Group and Voya Investment Management are its subadvisers.

For more information on the Fund, contact shareholder services at (866) 270-7788, 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.

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.

For Further Information:

Shareholder Services

(866) 270-7788

closedendfunds@virtus.com

Source: Virtus Dividend, Interest and Premium Strategy Fund

FAQ

What is the current distribution strategy for Virtus Dividend Fund (NFJ)?

NFJ maintains a Managed Distribution Plan seeking consistent distribution levels from net investment income, realized capital gains, or both.

How does NFJ handle distributions that exceed income and capital gains?

When distributions exceed income and capital gains, the difference is paid from fund assets, constituting a return of shareholder capital.

What tax implications should NFJ shareholders consider for these distributions?

Shareholders will receive Form 1099-DIV for tax reporting purposes, with final distribution sources subject to change based on tax regulations.

Does NFJ's return of capital distribution indicate poor fund performance?

No, return of capital distributions don't necessarily reflect fund performance and shouldn't be confused with yield or income.

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