Agreed that the PTY dividend is more reliable. But I have NCV for the higher dividend and am willing to assume, and monitor, the increased risk. That is why I invest in several issues. Like putting the bullseye (my diversification ideal) in the middle of a shotgun pattern, of investments.
Also, I just use NVC for income and do not re-invest the dividend.
Earnings were good. Obviously .27 on NII line would be better than .26, however, this is a convertible fund therefore capital gains cannot be ignored as part of the return. In an up market the capital gains portion will bring back additional upside return to the shareholder. If this were a pure bond fund I would be more concerned about NII, but it's not, so we can't look at only NII.
JD are you for real? PTY pays 7.13% right now, NCV pays 11.63%. I can show you a MUNI that pays about the same as PTY, (MHI @ 7.10%) and it's, Wait for it......
So go ahead put your spare change into PTY and give away 4.5% in dividends all because you're scared they may drop their div a fraction of a percent. Oh and BTW, NCV has a premium of 4.97% compared to PTY @ 29.00%. Not to mention PTY is 21.85 a share right now.
If that aint enough NCV hasn't dropped the div in over 2 years