AllianzGI Equity & Convertible Income Fund [NIE] Stock Forecast

Anyone that's followed me for a while knows I'm obsessed with the word "conditions" when it comes to investing. Virtus Equity & Convertible Income Fund has done quite well for some time now, consistently being in the top of its category for several years. I typically like more mean reversion plays with funds that have fared relatively poorly over the last several years, but the consistency can't be ignored on a relative basis.

Stop me if you've heard this one: “If you buy a high-yielding investment, your big yield won't last because they'll cut dividends.”

With yields north of 7%, closed-end funds (CEFs) should be a staple of every American's portfolio.

Price performance of healthcare and financial stocks in NIE's portfolio was quite disappointing this year. However, technology stocks performed well. NIE has been able to generate an exceptionally high yield during 2022 and 2023. Otherwise, the average yield stays within a range of 5 to 8 percent.

Convertible securities offer the best of fixed-income securities and common equities to investors. AllianzGI Equity & Convertible Income Fund is heavily invested in technology and healthcare companies, which is not unsurprising but resulted in horrible performance when the bubble popped last year.

NIE has been paying consistent quarterly dividends with a reasonably strong yield and exceptionally high total return over the long term. Convertible securities protected NIE from extreme volatility of large-cap stocks, and covered call strategy helped it generate strong pay-out.

The AllianzGI Equity & Convertible Income Fund uses a combination of stocks, covered calls, and convertibles to provide investors with capital appreciation and current income. This differs from its sister CEF, the Virtus AllianzGI Diversified Income & Convertible Fund, who emphasizes the convertible part of its strategy.

We review CEF market valuation and performance through the first week of December and highlight recent market action. November did not bring much joy to CEF investors with the market finishing lower in aggregate. December has continued the trend lower so far.

This article reviews DivGro, my portfolio of dividend growth stocks. I provide a summary of transactions and indicate how those transactions affected DivGro's projected annual dividend income. This month is the first time my projected monthly dividend income topped $3,000!

NIE offers a quarterly distribution of $0.38 per share, which makes up a 5.02% yield, as of 09/18/2021. The quarterly distribution rate has been steady and changed only a couple of times over the last decade.

AllianzGI Equity & Convertible Income Fund is a US stock , located in New york of Ny and trading under the symbol NIE

AllianzGI Equity & Convertible Income Fund stock price is $19.885 today.

Yes, AllianzGI Equity & Convertible Income Fund is a publicly traded company.