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

Virtus Convertible & Income Fund II (NYSE: NCZ) has announced a quarterly cash distribution of $0.34375 per share for its Series A Cumulative Preferred Shares, payable on September 30, 2025. The shareholders on record as of September 12, 2025, will be eligible to receive this distribution. These Series A shares, currently trading under the ticker NCZ PR A, carry an annual dividend rate of $1.375 per share and are rated “A” by Fitch Ratings. The shares were initially issued on September 11, 2018, priced at $25.00 per share and are designed to pay distributions quarterly. The upcoming distribution reflects the accrual period from July 1, 2025, to September 30, 2025.

Additionally, these preferred shares are callable at their liquidation value of $25.00 per share, plus any accrued dividends, at any point.

Virtus Convertible & Income Fund II aims to provide a total return through capital appreciation and high current income. The fund is managed by Virtus Investment Advisers, LLC, which operates under the umbrella of Virtus Investment Partners, Inc., while Voya Investment Management acts as its subadviser.

Investors should be aware of the associated risks, including the potential loss of principal and the possibility that shares may trade at premiums or discounts to their net asset values. Detailed information about the fund's investment objectives and risks is available in its annual report, accessible via the fund's website.

For further inquiries regarding the fund, shareholders can reach out to Virtus's shareholder services at (866) 270-7788 or via email at closedendfunds@virtus.com. More information is also available on the firm's website, virtus.com.

The recent announcement by Virtus Convertible & Income Fund II (NYSE: NCZ) of a quarterly distribution of $0.34375 per Series A cumulative preferred share underscores the fund's commitment to providing consistent income to its shareholders. Trading under the symbol NCZ PR A, these shares offer an annual dividend rate of 5.5%, appealing to income-focused investors looking for stable cash flow.

Given the current interest rate environment, where central banks are navigating a trajectory of potential rate increases, the A-rated Series A cumulative preferred shares can be likened to a hedge against market volatility. This form of investment offers both fixed income while allowing for upside if market conditions improve. The call option at $25.00 per share, which investors should be aware of, could dampen long-term capital appreciation prospects if the shares are redeemed early following favorable market conditions.

Investors considering an entry into NCZ PR A should evaluate the broader market trends that affect convertible securities and preferred shares. With the evolution of monetary policy, preference should be given to funds that can withstand changes in interest rates. The fund’s strategy aims to balance risk and return, focusing on capital appreciation coupled with high current income—principles crucial in a rising rate environment where bond prices typically decline.

Moreover, potential investors should also weigh the risks associated with closed-end funds, particularly the potential for shares to trade at a premium or discount relative to their net asset value. It would benefit investors to conduct a thorough risk assessment, review the fund's annual report, and maintain a diversified portfolio to mitigate inherent risks.

In conclusion, Virtus Convertible & Income Fund II provides a noteworthy option for those prioritizing income, but due diligence regarding market dynamics and personal investment goals remains essential.