If NCV follows the other PIMCO funds that have paid their canceled divdends lately we should get our dividend before the end of the year. Then the question becomes what happens in 2009, a dividend cut is almost a sure thing, all the other funds I own have cut and NCV is no different. Anyone have an idea what the new divy might be and will they switch to quarterly instead of monthly like the other funds have??
"NEW YORK, Dec 31, 2008 (GlobeNewswire via COMTEX) -- Nicholas-ApplegateConvertible & Income Fund (NYSE:NCV) and Nicholas-Applegate Convertible & IncomeFund II (NYSE:NCZ) (collectively, the "Funds") today announced that the commonshare dividends previously declared on October 1, 2008 will be paid on December31, 2008. Accordingly, the previously declared dividends ($0.12500 and $0.11875 per commonshare for NCV and NCZ, respectively), which were postponed on November 3, 2008,will be paid on December 31, 2008 to shareholders of record on October 11, 2008."
That's 2 Dividends gentlemen! Not 3!
The number of shares outstanding times the NAV must equal the debt outstanding; or debt outstanding divided by number of shares equals required NAV. $357 Million divided by 71.5M shares equals $4.99. Since any dividend reduces the NAV that must be allowed for as well. So to pay one divided of $0.125 requires an NAV of $4.99 + $0.125 = $5.12. So, as soon as they finish with ARPS redemptions next week, we are there for one divy and they could announce another, perhaps.