ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Jan. 2026) net income data. The Revenue data used here is two times the semi-annual (Jan. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Virtus Dividend, Interest & Premium Strategy Fund ROE % Related Terms
Virtus Dividend, Interest & Premium Strategy Fund ROE % Historical Data
* 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 ROE % Chart
Virtus Dividend, Interest & Premium Strategy Fund Annual Data
* 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 ROE % vs Asset Management Industry
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Jan. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Virtus Dividend, Interest & Premium Strategy Fund (NFJ) has a ROE % of 19.44% as of Jan. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Virtus Dividend, Interest & Premium Strategy Fund and its competitors. This is 79% above median its historical median of 10.85. According to the industry distribution chart, Virtus Dividend, Interest & Premium Strategy Fund ranks #545 out of 1615 companies in the Asset Management industry, placing it in the top 33.7%.
Is Virtus Dividend, Interest & Premium Strategy Fund's ROE % too high?
Virtus Dividend, Interest & Premium Strategy Fund's current ROE % of 19.44% is 79% above median its 10-year median of 10.85. The Asset Management industry median ROE % is 6.35. Virtus Dividend, Interest & Premium Strategy Fund's value of 19.44% is 206.1% above this industry median. Based on the distribution chart, Virtus Dividend, Interest & Premium Strategy Fund ranks #545 out of 1615 companies in the Asset Management industry, which is above the industry midpoint. Overall, Virtus Dividend, Interest & Premium Strategy Fund has a GF Score™ of 52/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Virtus Dividend, Interest & Premium Strategy Fund's ROE % compare to HYT and ASST?
According to the Asset Management industry distribution chart, Virtus Dividend, Interest & Premium Strategy Fund ranks #545 out of 1615 companies for ROE %. This puts Virtus Dividend, Interest & Premium Strategy Fund in the upper half of its industry. The industry median ROE % is 6.35. Virtus Dividend, Interest & Premium Strategy Fund's value of 19.44% is 206.1% above this benchmark. While the company's 10-year median is 10.85 vs. the industry median of 6.35, Virtus Dividend, Interest & Premium Strategy Fund has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Asset Management company?
The median ROE % among Asset Management companies is 6.35, based on 1,615 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Virtus Dividend, Interest & Premium Strategy Fund's current ROE % of 19.44% is 206.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Virtus Dividend, Interest & Premium Strategy Fund and its competitors. For the Asset Management industry, the median ROE % is 6.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Virtus Dividend, Interest & Premium Strategy Fund's current ROE % is 19.44%, which is 79% above median its own 10-year median of 10.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Virtus Dividend, Interest & Premium Strategy Fund stock overvalued right now?
Based on GuruFocus' analysis, Virtus Dividend, Interest & Premium Strategy Fund (NFJ) is currently considered Modestly Undervalued. The stock's GF Value™ is $19.40, compared to a current price of $14.97 — trading 22.8% below its estimated fair value. The current ROE % is 19.44%, which is 79% above median its 10-year median of 10.85 and 206.1% above the Asset Management industry median of 6.35. Virtus Dividend, Interest & Premium Strategy Fund's overall GF Score™ is 52/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Virtus Dividend, Interest & Premium Strategy Fund (NFJ), the current ROE % is 19.44% as of Jan. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Virtus Dividend, Interest & Premium Strategy Fund (NFJ) Overvalued in 2026?
Based on GuruFocus' analysis, Virtus Dividend, Interest & Premium Strategy Fund stock appears to be undervalued.
The current stock price of $14.97 is trading 22.8% below its estimated GF Value™ of $19.40.
GuruFocus considers Virtus Dividend, Interest & Premium Strategy Fund to be Modestly Undervalued.
Key valuation signals for NFJ:
ROE %: 19.44% (79% above median its 10-year median of 10.85)
GF Value™: $19.40 vs. price of $14.97 (22.8% below fair value)
Industry Position: 206.1% above the Asset Management median (#545 of 1615)
No single metric tells the full story. See the NFJ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Virtus Dividend, Interest & Premium Strategy Fund Business Description
Virtus Dividend, Interest & Premium Strategy Fund is a Massachusetts-based business trust. The primary investment objective of the company is to seek current income and gains, with a secondary objective of long-term capital appreciation. It pursues its investment objectives by investing in a diversified portfolio of dividend-paying common stocks and income-producing convertible securities.
52GF Score
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