April 1, 2016: Bought 59 shares of NIE at $18.09 per share.AllianzGI Equity & Convertible Income Fund (NYSE:NIE), formerly AGIC Equity & Convertible Income Fund, is a diversified, closed-end management investment company. The fund's investment objective is to seek total return consisting of capital appreciation, current income and gains.
NIE is a closed-end fund (CEF) that distributes income quarterly. The current distribution rate is 8.36%. Earlier this year, I transferred 237 shares of NIE from my portfolio at Scottrade to DivGro. With this buy, I'm adding 59 shares for a total of 296 shares.
Scottrade offers a so-called flexible reinvestment program (FRIP) that allows investors to accumulate dividend payments from their stocks and to buy full shares of additional stocks commission-free. I choose to accumulate dividends for 3 months before buying shares.
Furthermore, I usually buy additional shares of one of the CEFs I own. Investing in CEFs provides additional diversification. In the case of NIE, the fund has well over 100 holdings, including stocks like Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Intel (NASDAQ:INTC), Visa (NYSE:V), Facebook (NASDAQ:FB), Costco (NASDAQ:COST) and Starbucks (NASDAQ:SBUX).
Here is an overview of NIE, courtesy of CEF Connect:
NIE is trading at a discount of about 12% to net asset value and yields 8.36%.
This buy adds $89.68 to DivGro's projected annual dividend income, which currently stands at $10,325. As always, I've updated my portfolio with the details of this buy.
Thanks for reading! Do you have any thoughts on owning closed-end funds?
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