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Virtus Dividend, Interest & Premium Strategy Fund Forward Rate of Return (Yacktman) %

: 0.00% (As of Jan. 2022)
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Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Virtus Dividend, Interest & Premium Strategy Fund's forward rate of return for was 0.00%.

The historical rank and industry rank for Virtus Dividend, Interest & Premium Strategy Fund's Forward Rate of Return (Yacktman) % or its related term are showing as below:

Unlike the Earnings Yield %, the Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Virtus Dividend, Interest & Premium Strategy Fund Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Virtus Dividend, Interest & Premium Strategy Fund's Forward Rate of Return (Yacktman) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Virtus Dividend, Interest & Premium Strategy Fund Annual Data
Trend Jan18 Jan19 Jan20 Jan21 Jan22
Forward Rate of Return (Yacktman) %
- - - - -

Virtus Dividend, Interest & Premium Strategy Fund Semi-Annual Data
Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22
Forward Rate of Return (Yacktman) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - -

Competitive Comparison

For the Asset Management subindustry, Virtus Dividend, Interest & Premium Strategy Fund's Forward Rate of Return (Yacktman) %, along with its competitors' market caps and Forward Rate of Return (Yacktman) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Virtus Dividend, Interest & Premium Strategy Fund Forward Rate of Return (Yacktman) % Distribution

For the Asset Management industry and Financial Services sector, Virtus Dividend, Interest & Premium Strategy Fund's Forward Rate of Return (Yacktman) % distribution charts can be found below:

* The bar in red indicates where Virtus Dividend, Interest & Premium Strategy Fund's Forward Rate of Return (Yacktman) % falls into.



Virtus Dividend, Interest & Premium Strategy Fund Forward Rate of Return (Yacktman) % Calculation

Forward Rate of Return is a concept that Don Yacktman uses in his investment approach. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. He said in the interview (March 2012, when the S&P 500 was at about 1400):

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

Virtus Dividend, Interest & Premium Strategy Fund's Forward Rate of Return of Jan. 2022 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year Book Value Growth Rate
=0/14.73+0
=0.00 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Virtus Dividend, Interest & Premium Strategy Fund  (NYSE:NFJ) Forward Rate of Return (Yacktman) % Explanation

Unlike the Earnings Yield, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of Book Value per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is to make it comparable to the growth rate.


Be Aware

In the Forward Rate of Return calculation, the growth rate is added directly to today's free cash flow yield. Therefore the calculation is reliable only if the company can grow at the same rate in the future as it did in the past. Investors should pay close attention to this when researching growth stocks. A more accurate measurement for return is Return on Capital.


Virtus Dividend, Interest & Premium Strategy Fund Forward Rate of Return (Yacktman) % Related Terms

Thank you for viewing the detailed overview of Virtus Dividend, Interest & Premium Strategy Fund's Forward Rate of Return (Yacktman) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Virtus Dividend, Interest & Premium Strategy Fund Business Description

Virtus Dividend, Interest & Premium Strategy Fund logo
Industry
Financial Services » Asset Management NAICS : 523991 SIC : 6733
Traded in Other Exchanges
N/A
Address
101 Munson Street, Greenfield, MA, USA, 01301
Virtus Dividend, Interest & Premium Strategy Fund is a Massachusetts-based business trust. Its primary investment objective is to seek current income and gains, with a secondary objective of long-term capital appreciation. The fund pursues its investment objectives by investing in a diversified portfolio of dividend-paying common stocks and income-producing convertible securities.
Executives
Mowrey John R. other: Portfolio Manager 1633 BROADWAY NEW YORK NY 10019
Oliver Thomas W Jr other: Affiliated Person 2121 SAN JACINTO DRIVE DALLAS TX 75201
Pushpaharan Gem other: Affiliated Person 1633 BROADWAY NEW YORK NY 10019
Viggiano John other: Affiliated Person 1633 BROADWAY NEW YORK NY 10019
Cogan Sarah E director 1633 BROADWAY NEW YORK NY 10019
Macleod James S director 250 E KILBOURN AVE MILWAUKEE WI 53202
Parker Jeffrey D other: See Remarks 1345 AVENUE OF THE AMERICAS NEW YORK NY 10105
Holt Erick director 1633 BROADWAY NEW YORK NY 10019
Ruckman Craig officer: Assistant Secretary 1633 BROADWAY NEW YORK NY 10019
Rappaport Alan director C/O PIMCO 650 NEWPORT CENTER DRIVE NEWPORT BEACH CA 92660
Magnuson Paul A other: Portfolio Manager 2121 SAN JACINTO, SUITE 1840 DALLAS TX 75201
Mildner Heiko other: Affiliated Person 1633 BROADWAY NEW YORK NY 10019
Thompson Kathleen C. other: Affiliated Person 1633 BROADWAY NEW YORK NY 10019
Fischer Ben J other: Portfolio Manager 1633 BROADWAY NEW YORK NY 10019
Grau William other: SEE REMARKS C/O ALLIANZ GLOBAL INVESTORS U.S. LLC 1633 BROADWAY NEW YORK NY 10019

Virtus Dividend, Interest & Premium Strategy Fund Headlines

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