Virtus Diversified Income & Convertible Fund Common Shares of Beneficial Interest (ACV)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach this as a closed-end fund, not an operating company, so I am cautious about applying standard stock screens too literally. At the 2026-10-13 close of $24.51, the market cap is $274.6M. FairStock's P/E is 4.01, and the stated dividend yield is 10.53%. FairStock also calculates a Graham Number of $59.68, implying a margin of safety of 58.93%, which suggests the price is well below that formula's estimate of value. The shares sit near the low end of their 52-week range of $23.65 to $29.04. On price alone, that is intriguing. But quality and history are not there to back it up. The FairStock Score is 45/100. The Piotroski F-Score is 0/9, and the Altman Z-Score is 1.68, both weak or poorly suited to a fund. I have no P/B, ROE, ROCE, D/E, revenue growth, or profit growth to examine. The Lynch category is 'none' because there are only 0 years of filed results, when the rule needs 3. That means I cannot judge earnings power, distribution coverage, or durability. For a fund, the high yield could be attractive, but it could also signal risk if it is not covered. The convertible and income mandate may provide diversification, yet the numbers given do not prove that. Graham would demand a margin of safety; here the formula says yes, but the missing financials and weak screens say wait for more evidence. I would want filed results and distribution history before treating this as a true value opportunity.

In plain English: Virtus Diversified Income & Convertible Fund is a fund that invests in convertible securities, income-producing stocks, and debt. It pays a very high dividend, trades near the bottom of its 52-week range, and looks cheap on the limited numbers available, but there is almost no filed financial history and several health checks are weak or missing. On balance, the price looks potentially cheap, but the business quality is hard to judge.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer