Virtus: Global Approach to Monthly Dividends
In my pursuit to add more high-yield holdings that pay out highly desirable monthly distributions, my search for a quality addition to our model portfolio led me to the Virtus Global Dividend & Income Fund (ZTR), asserts income expert Bryan Perry, editor of Cash Machine.
This closed-end fund employs a managed distribution to pay out a minimum of 10% of Net Asset Value per year. Based on the year-to-date performance of its share price rising by 15.82%, the fund is outperforming the S&P 500 by almost 2 to 1.
At the end of the day, it’s all about asset selection and timing of buying and selling, when to use leverage and when to hedge, how to generate maximum income from the portfolio and use a management team with a hot hand.
For the two new advisors that began to manage the $330 million ZTR fund in 2016, the numbers they are sporting are most promising for future outperformance both in terms of income and capital appreciation.
ZTR is a diversified fund that has a current target allocation of investing its assets in 60% equity securities and 40% fixed income.
The fund’s investment objective is to seek total return, consisting of capital appreciation and income. The equity allocation invests exclusively in what the managers believe are “high-quality” companies within the high-yielding global equity universe.
Businesses that return free cash flow generated by the business to shareholders via dividends are the focus.
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