NFJ (Virtus Dividend, Interest & Premium Strategy Fund) WACC %:3.21% (As of Jun. 25, 2026) — 60% Below Median

Virtus Dividend, Interest & Premium Strategy Fund  (NYSE:NFJ) WACC % Explanation

Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Virtus Dividend, Interest & Premium Strategy Fund's weighted average cost of capital is 3.21%%. Virtus Dividend, Interest & Premium Strategy Fund's ROIC % is 0.00% (calculated using TTM income statement data). Virtus Dividend, Interest & Premium Strategy Fund earns returns that do not match up to its cost of capital. It will destroy value as it grows.

1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.

2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.

3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.

4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.

The historical data trend for Virtus Dividend, Interest & Premium Strategy Fund's WACC % 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.

Virtus Dividend, Interest & Premium Strategy Fund WACC % Chart

Virtus Dividend, Interest & Premium Strategy Fund Annual Data
	Trend	Jan18	Jan19	Jan20	Jan21	Jan22	Jan23	Jan24	Jan25	Jan26
WACC %		Get a 7-Day Free Trial				8.07	9.99	10.64	11.19	2.35

Virtus Dividend, Interest & Premium Strategy Fund Semi-Annual Data
	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23	Jul23	Jan24	Jul24	Jan25	Jul25	Jan26
WACC %	Get a 7-Day Free Trial													10.64	10.66	11.19	10.76	2.35

NFJ vs HYT, ASST, CSWC: WACC % Comparison

For the Asset Management subindustry, Virtus Dividend, Interest & Premium Strategy Fund's WACC %, along with its competitors' market caps and WACC % 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 WACC % vs Asset Management Industry

For the Asset Management industry and Financial Services sector, Virtus Dividend, Interest & Premium Strategy Fund's WACC % distribution charts can be found below:

* The bar in red indicates where Virtus Dividend, Interest & Premium Strategy Fund's WACC % falls into.

Virtus Dividend, Interest & Premium Strategy Fund WACC % Calculation

The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.

1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Virtus Dividend, Interest & Premium Strategy Fund's market capitalization (E) is $1391.720 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Jan. 2026, Virtus Dividend, Interest & Premium Strategy Fund's latest one-year semi-annual average Book Value of Debt (D) is $0 Mil.
a) weight of equity = E / (E + D) = 1391.720 / (1391.720 + 0) = 1
b) weight of debt = D / (E + D) = 0 / (1391.720 + 0) = 0

2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.408%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Virtus Dividend, Interest & Premium Strategy Fund's beta is -0.1990.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.408% + -0.1990 * 6% = 3.214%

3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
As of Jan. 2026, Virtus Dividend, Interest & Premium Strategy Fund's interest expense (positive number) was $-0 Mil. Its total Book Value of Debt (D) is $0 Mil.
Cost of Debt = -0 / 0 = %.

4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 0 / 148.93 = 0%.

Virtus Dividend, Interest & Premium Strategy Fund's Weighted Average Cost Of Capital (WACC) for Today is calculated as:

* 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 Business Description