Virtus Convertible & Income Fund faces sustainability questions despite improved dividend coverage.

Virtus Convertible & Income Fund faces sustainability questions despite improved dividend coverage. NCV trades at a 10.62% discount to NAV with a 10% yield, but net investment income has declined significantly. The fund increasingly relies on net realized gains and return of capital for distributions, which threatens long-term NAV stability. Elevated interest rates continue to limit growth potential while aggressive leverage amplifies risk. Current valuation appears attractive on the surface, yet persistent NAV erosion and spotty dividend history warrant caution. A more conservative distribution policy would better support reliable income generation. Investors should monitor interest rate trends closely before committing capital to this fund.