DNP Select Income Fund (DNP) Aktienübersicht
DNP Select Income Fund Inc. ist ein geschlossener, gemischter Investmentfonds, der von Virtus Investment Partners, Inc. Mehr Details
| Schneeflocken-Punktzahl | |
|---|---|
| Bewertung | 1/6 |
| Künftiges Wachstum | 0/6 |
| Vergangene Leistung | 1/6 |
| Finanzielle Gesundheit | 4/6 |
| Dividenden | 4/6 |
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DNP Select Income Fund Inc. Wettbewerber
Preisentwicklung & Leistung
| Historische Aktienkurse | |
|---|---|
| Aktueller Aktienkurs | US$10.77 |
| 52-Wochen-Hoch | US$10.92 |
| 52-Wochen-Tief | US$9.59 |
| Beta | 0.34 |
| 1 Monat Veränderung | 1.13% |
| 3 Monate Veränderung | 4.56% |
| 1 Jahr Veränderung | 11.15% |
| 3 Jahre Veränderung | 5.38% |
| 5 Jahre Veränderung | 2.09% |
| Veränderung seit IPO | 6.37% |
Aktuelle Nachrichten und Updates
Recent updates
Seeking Alpha • Apr 12
DNP: Undervalued And Renewed Growth Catalyst From AI Data Centers
Summary DNP Select Income Fund is upgraded to a strong buy, trading near its deepest discount to NAV in five years. DNP offers a 7.4% monthly dividend yield, with a robust track record of stable, tax-efficient distributions and no risk of a dividend cut. Exposure to utilities positioned for AI data center growth provides a powerful forward earnings catalyst for DNP’s portfolio. Moderate leverage and interest rate sensitivity are risks, but lower rates and continued AI-driven demand could amplify upside. Read the full article on Seeking AlphaSeeking Alpha • Apr 27
DNP: 8% Yield On Utilities, Up Nearly 8% Year-To-Date, Historic Low Premium
Summary DNP Select Income Fund is up year-to-date, outperforming the S&P 500, and offers an 8% yield with a focus on utilities. DNP's valuation is attractive, trading at a 2.27% premium to NAV, lower than its historical premiums, making it a buy. Risks include credit, interest rate and leverage risks, but the fund's well-covered yield and potential interest rate cuts offer upside. Read the full article on Seeking AlphaSeeking Alpha • Mar 05
DNP: Recovering From Rate Pressures As Premium Shifts To A Historically Narrow Level
Summary DNP Select Income Fund is a closed-end fund with infrastructure exposure, primarily utility exposure, being its largest sleeve. The fund's premium to NAV has come down to a relatively narrow level compared to its historical level, even as the fund saw some significant recovery over the last year. One of the more notable aspects of DNP is the regular monthly distribution has remained consistent for nearly 3 decades now. Read the full article on Seeking AlphaSeeking Alpha • Nov 15
DNP: Improving Finances And Inflation Protection
Summary The DNP Select Income Fund offers an 8.42% yield and invests in dividend-growing common equities, providing inflation protection and stable income for investors. Despite underperforming the S&P 500 Index, the fund's total return, including distributions, was 11.97% YoY, aligning with historical S&P 500 average returns. The fund's portfolio is heavily focused on utilities, ensuring stable cash flows and recession-resistant performance, making it a reliable income source. The fund fully covered its distributions this year, but its NAV is still down over the trailing eighteen-month period. Currently trading at a 2.77% premium to NAV, the fund is a bit expensive but cheaper than average. Read the full article on Seeking AlphaSeeking Alpha • Sep 02
DNP: Long-Term Capital Preservation Combined With Consistent Income
Summary DNP Select Income Fund offers consistent income with an 8.2% dividend yield, maintaining stable prices since 1987, making it ideal for income-focused investors. The fund's balanced portfolio includes 77% common stocks, 17% bonds and cash, and 6% MLPs, ensuring diversified exposure within the utilities sector. Despite trading at an 8.33% premium to NAV, the potential benefits from future interest rate cuts make it an attractive long-term buy. Interest rate cuts may provide relief to DNP's current cost of leverage, improving the fund's health. Read the full article on Seeking AlphaSeeking Alpha • Jun 17
DNP: Utility Fund Yield Jumps To 9.6%, Time For An Upgrade
Summary We moved the DNP Select Income Fund to a Sell a few months back. The CEF has underperformed XLU by 18% since then. We go over the reasons for our upgrade and compare the longer-term performance to UTG, UTG, and BUI. Read the full article on Seeking AlphaSeeking Alpha • May 23
DNP: It Is Finally Time For This Beaten-Down CEF, 8.8% Yield
Summary DNP Select Income Fund is a closed-end fund focused on utilities. The fund is composed mostly of utility equities, with a smaller allocation to MLPs, bonds, and cash. DNP's premium to NAV (Net Asset Value) is currently low compared to its historical average, presenting a potential buying opportunity. The surge in energy needs from AI development will benefit utility companies, leading to a potential NAV increase for DNP. Despite recent ROC (Return of Capital) utilization, the fund has a history of stable NAV and is expected to perform well with rising utility stock prices. Read the full article on Seeking AlphaSeeking Alpha • Apr 29
DNP: Unsustainable Strategy In The Higher For Longer Environment
Summary DNP Select Income Fund focuses on high-quality utility and energy infrastructure investments, with a majority of its exposure in publicly traded utility companies. The fund has a diversified portfolio of large-cap utility businesses with mostly IG balance sheets, which can accommodate stable distributions. However, DNP has failed to grow its dividend for over two decades and has underperformed the market over the past decade. Now, once the SOFR is this high and the higher for longer scenario looks indeed realistic, DNP's return prospects seem structurally impaired. In this article, I elaborate on why my recommendation is to avoid this CEF. Read the full article on Seeking AlphaSeeking Alpha • Mar 04
DNP: 3 Reasons We Are Moving Back To A Sell For This Utility Fund
Summary DNP Select Income Fund has struggled to make headway in the past 15 months, underperforming the S&P 500 by 45%. The recent outperformance of the price relative to NAV has opened up the "jaws" once again. We tell you why we are moving to a Sell once again. Read the full article on Seeking AlphaSeeking Alpha • Dec 21
DNP: Remain Neutral On Fund Valuations
Summary DNP Select Income Fund has had a rough year, losing approximately 17% in total returns compared to gains in the S&P 500. Utility sector valuations have normalized, making the sector attractive on a relative basis. While DNP's premium valuation has normalized a bit, it is still richly valued relative to its assets so caution is recommended. Read the full article on Seeking AlphaSeeking Alpha • Nov 10
DNP: Rising Rates Pressure NII But Still Expensive
Summary DNP Select Income Fund offers a high level of income with an 8.57% current yield, higher than the S&P 500 Index. The fund's recent performance has been disappointing, with an 18.89% decline in share price compared to a 10.50% gain in the S&P 500 Index. The fund's leverage and allocation to utilities have hindered its performance, and it may struggle to sustain its distribution in the near term. The market appears to be ignoring the 21% allocation to the midstream sector, which has been substantially outperforming utilities. The fund's shares are incredibly expensive at the current price. Read the full article on Seeking AlphaSeeking Alpha • Sep 07
DNP: Risk Management Always Pays Off
Summary DNP Select Income Fund is a closed-end fund that focuses on current income and has maintained a large distribution. The fund primarily invests in utilities and midstream assets, with some exposure to the communication sector. DNP has underperformed its benchmarks in recent years and faces potential challenges due to the state of the utilities industry and its leverage costs. Distribution will likely be cut and a drop of price to below NAV will be extremely painful. Read the full article on Seeking AlphaSeeking Alpha • Jul 18
DNP: Top 10 Big-Yield CEFs
Summary We share updated data on more than 10 of the biggest and most-popular big-yield CEFs, many of them paying distributions monthly. After reviewing seven important questions to ask before investing in any CEF, we consider current market conditions and macroeconomic risk factors. We have a special focus on the DNP Select Income Fund, which is known for safety and stability (thanks to its utility sector and investment-grade bond allocations). We conclude with our strong opinion on investing in the current market environment, plus more information on all of our current big-yield CEF holdings and rankings. Read the full article on Seeking AlphaSeeking Alpha • Jun 30
DNP Vs. UTG: 2 Solid Long-Term Infrastructure Income Plays
Summary DNP Select Income and Reaves Utility Income are both solid long-term choices in the utility/infrastructure closed-end fund space. UTG gets the edge over DNP due to its valuation, as the discount/premium can play a significant role in the outcome for investors. Buying DNP at a premium of below 10% is generally a good buying opportunity, but even more ideally, it would be at a discount which doesn't come around often. Read the full article on Seeking AlphaSeeking Alpha • Jun 20
DPG And DNP: Big Distribution Cut From One, Warning For The Other
Summary DNP Select Income and Duff & Phelps Utility and Infrastructure Fund Inc are two popular income closed-end funds. While their longer-term trends are not identical, they have a lot in common when you examine recent pricing and 3-year performance. One just delivered a massive distribution cut, is the other next? Read the full article on Seeking AlphaSeeking Alpha • Jan 20
DNP: A Golden Utilities CEF, Currently Extremely Overpriced
Summary DNP is a utilities equities closed end fund with a substantial track record. The fund is one of those rare, golden standard CEFs that have always traded at premiums to NAV in the past decade. With the entire Utilities sector trading at historic high P/E ratios on the back of a market-wide defensive stance, DNP is now trading at a record 27.15% premium. We love this fund (and own it), but nothing escapes mean-reversion when overbought conditions are present. The FAANG exuberance seen in 2020/2021 has been replaced by Utilities / Healthcare overweight positioning on the back of recessionary fears. Thesis DNP Select Income Fund (DNP) is a closed-end management investment company that first offered its common stock in 1987. The fund's primary investment objectives are current income and long-term growth of income. DNP seeks to achieve its objectives by investing primarily in a diversified portfolio of equity and fixed income securities of companies in the public utilities industry. DNP is a golden standard of the Utilities CEF structures. Utilities are a defensive asset class, and they have seen a massive inflow of capital as investors have started to price in a recession. Massive inflows into an asset class not matched by an equivalent move up in fundamental performance, end up inflating the numerator of the 'P/E' ratio: Utilities P/E Ratios (Yardeni Research) As we can see from the graph above, courtesy of Yardeni, the Utilities sector displays one of the highest P/E ratio observed in the past 20 years. Why is this the case? Because it is a defensive sector: 1-Year Total Return (Seeking Alpha) We can see in the above total return graph that the Utilities Select Sector SPDR ETF (XLU) and the Health Care Select Sector SPDR Fund (XLV) had very shallow drawdowns in 2022 as the S&P 500 cratered. The reason for this performance is the crowding-out trade. Unlike retail investors, many large asset managers have defined, maximum cash buckets which usually tend to be in the 5% to 10% range. That means that a large fund cannot hold cash more than those levels, which translates into the fund managers moving into defensive stocks/sectors when they believe a recession is around the corner. As retail investors we have the luxury of sitting 100% in cash if we choose to do so, whereas large asset managers need to somehow justify their fees, thus always remain invested in the equities markets to a certain extent. We can see how DNP's total return closely mirrors what we observed in XLU: DNP vs XLU (Seeking Alpha) DNP is a structural transformation of Utilities equity exposure into monthly dividends. The CEF structure though has its pitfalls as well, namely the premium/discount to NAV. When investors love a CEF too much, they tend to bid it up substantially, but unlike an ETF which just issues more shares, a CEF just ends up having a large premium to NAV. So you have a bit of a double whammy here - a massive, unsustainable premium to NAV for DNP (which we discuss in detail in the below 'Premium / Discount to NAV' section), and a historic high P/E ratio for the underlying asset class, namely Utilities. Premium / Discount to NAV DNP is one of those rare, golden standard CEFs that have always traded at premiums in the past decade: Premium/Discount to NAV (Morningstar) The above table, courtesy of Morningstar, presents the monthly premiums/discounts for DNP in the past decade. Blue is indicative of a premium to NAV, while green shows months when the CEF was trading at a discount. We can only see blue in the table above, signifying a voracious investor appetite for this name. The orange box we have drawn above shows the average premium exhibited by the fund, by calendar year. Outside 2012, we can see the CEF having an average premium of 15% to 17%. Moreover, if we look at the next row, again outside 2012, the fund never exhibited a premium higher than 26.75%, achieved in 2020. Which brings us to today's premium level, which is currently 27.15%: DNP Premium to NAV (YCharts) Today's premium level is basically the second largest in the past decade. Is it sustainable? No. Simply put, the CEF's shares trade at a premium of 27.15% to the actual NAV of the fund. If DNP were to liquidate today, investors would lose 27.15% right now. Framing the premium from this angle should give a retail investor a better understanding of the magnitude of this dislocation (for avoidance of doubt, there is 0% chance of a fund liquidation; however, the crux of a CEF structure is the basis between NAV and share price). Conclusion DNP is a 6.7% yielding CEF. The fund transforms Utilities equities returns into monthly dividends. The vehicle is a golden standard in the CEF space, having an extremely robust historical performance and long tenure. Investors have recognized the long term value in the CEF by bidding it up in the past decade. In the past ten years the CEF has spent its time at a market value above its net asset value. On average, when measured monthly, the premium to NAV has been around 15%. Currently DNP is trading at an extremely high historic level of 27.15% above NAV. This is due to the ongoing recession and the defensive market positioning in Utilities.Seeking Alpha • Dec 15
DNP Select Income Fund declares $0.065 dividend
DNP Select Income Fund (NYSE:DNP) declares $0.065/share monthly dividend, in line with previous. Forward yield 6.89% Payable Feb. 10; for shareholders of record Jan. 31; ex-div Jan. 30. Payable Mar. 10; for shareholders of record Feb. 31; ex-div Feb. 30. Payable April. 10; for shareholders of record Mar. 31; ex-div Mar. 30. See DNP Dividend Scorecard, Yield Chart, & Dividend Growth.Seeking Alpha • Dec 09
DNP: Excellent Income Fund But Best To Sit On The Sidelines
Summary DNP Select Income Fund invests in a diversified portfolio of utilities and other stable companies to provide investors with a high level of current income. The fund does very limited trading over time, which helps it keep costs down and beat its benchmark index. The fund is one of the few CEFs to have delivered a positive return this year. The fund has one of the best distribution track records, as it has maintained its current payout since 1997. The fund is ridiculously overvalued right now, which greatly reduces any interest in buying it today. One of the biggest problems that have been plaguing many Americans over the past year is the incredibly high level of inflation that we have been seeing throughout the economy. This has gotten so bad that many people have been forced to take on second jobs just to feed their families as the inflation has been centered around food and energy, which are necessities. Fortunately, as investors, we have other methods available to us that we can utilize to obtain the extra money that we need to support ourselves in today's economy. One of the best of these methods is to purchase shares of a closed-end fund that focuses on the generation of income. These funds provide investors with easy access to a diversified portfolio that can usually deliver a higher yield than pretty much anything else in the market. In this article, we will discuss the DNP Select Income Fund (DNP), which currently yields an impressive 6.98%. This yield is clearly sufficient to turn the heads of many investors, and as such can act as a respectable source of income. I have discussed this fund before, but that was nearly eighteen months ago, so naturally, a great many things have changed. This article will therefore focus specifically on these changes as well as provide an updated analysis of the fund's finances. Let us continue on and see if this closed-end fund ("CEF") could be a good addition to your portfolio today. About The Fund According to the fund's webpage, the DNP Select Income Fund has the stated objective of providing investors with a high level of current income and growing its income over time. This is something that is certainly nice to see given our thesis of raising our incomes to combat the effect of inflation. This is because inflation is constantly reducing the goods and services that we can purchase with a given level of income. As such, if the fund simply aimed to maintain a static distribution, the purchasing power of the distribution would steadily decrease over time. Thus, it is very nice to see that the fund is seeking to grow its distributions and by extension our incomes over time. In order to achieve this objective, the fund invests primarily in common equity and fixed-income securities issued by utility companies. This is likely not very surprising. Utilities are very well known for their conservative natures and high yields. These companies also tend to increase their dividends annually. With that said though, fixed-income securities do not usually increase their payments to investors over time. This is because these securities do not benefit from the growth and prosperity of the issuing company. After all, a company will not increase the payments that it makes to its creditors just because its profits go up. This fact may have some people questioning why the fund includes fixed-income securities at all if the fund is looking to grow its income over time. The biggest reason for this is that fixed-income securities, particularly preferred stock, typically have a much higher yield than the common equity of the same company. However, this fund is mostly invested in common stock and bonds: Duff & Phelps The rule about fixed-income securities typically having higher yields than common stock is not true for bonds. This is because interest rates have been at or near all-time lows for more than a decade so most bonds have a fairly low-interest rate on them. That has begun to change this year though as rising interest rates have caused bond prices to fall to the point that someone purchasing a bond today will get a yield that likely beats the common stock of the same company. This same dynamic of falling bond prices has pulled down the value of bonds held by the fund for a while though, which is unfortunate. As we can clearly see though, 79.0% of the portfolio consists of common stock so these securities will have much more of an impact on the fund's portfolio. The overwhelming majority of these holdings are utility companies, as might be expected: Duff & Phelps This is quite nice to see for those that are seeking safety and security because one of the defining characteristics of utility companies is that they have remarkably stable cash flows. The biggest reason for this is that utilities provide a service that most people consider to be a necessity for modern life. After all, how many of us do not have electricity or running water in our homes? As such, most people will prioritize paying their utility bills over making discretionary expenses. This could be important today considering that inflation has been pinching the finances of many families. The same characteristic of stable cash flows applies to telecommunications companies too because of how necessary Internet access and cellular phones have become to modern life. We can also see that approximately 21.0% of the portfolio is invested in oil & gas storage, transportation, and production companies. These are mostly midstream firms, which likewise enjoy stable cash flows. This is due to the business models that these companies use. In short, midstream companies enter into long-term contracts with customers under which the company transports and stores their hydrocarbon resources and bills the customer based on resource volumes, not resource values. In addition, these contracts include minimum volume commitments that specify a certain quantity of resources that a customer must send through the midstream company's infrastructure or pay for anyway. These commitments add another element of stability since they protect the company against the volume declines that might otherwise occur in a low-price environment. Overall, the takeaway here is that the companies that the fund is invested in should enjoy a great deal of cash flow stability, which lends itself well to providing dividends to the shareholders. As my regular readers are likely well aware, I have devoted a considerable amount of effort over the years to discussing companies in the midstream and utility sectors in this column. As such, many of the largest positions in the fund will undoubtedly be familiar. Here they are: Duff & Phelps I have discussed most of these companies at some point over the past several years. In fact, the only companies on this list that I have never discussed are Sempra Energy (SRE), Xcel Energy (XEL), and Dominion Energy (D). All three of these are electric and natural gas utilities though so their basic fundamentals are likely to be similar to the other companies on the list. The portfolio is actually quite similar to what we saw eighteen months ago. In fact, the only changes to the top ten positions list are Crown Castle International (CCI), CMS Energy (CMS), and WEC Energy Group (WEC) being replaced by CenterPoint Energy (CNP), American Electric Power (AEP), and Evergy (EVRG). It is difficult to complain about these changes as CMS Energy is somewhat overleveraged compared to the other firms in the sector and WEC Energy is somewhat overvalued today. As we largely see utilities being replaced with other utilities, there are no real changes to the fund's sector exposures. The fact that so few positions have changed over the eighteen-month period would lead one to believe that the fund has a fairly low annual turnover. This is in fact the case as the fund's current annual turnover is 12.00%, which is one of the lowest levels that we can find among any equity fund. This is something that is fairly nice to see because of the fact that it costs money to trade stocks or other assets, which are billed to the fund's shareholders. Thus, a high turnover makes management's job more difficult due to the need to generate a sufficient excess return over the market to cover these costs. This is a task that few managers succeed at consistently and as such most actively-managed funds trail the market. This one has historically done fairly well though as it has beaten its benchmark index during most time periods: Duff & Phelps As of the time of writing, the DNP Select Income Fund is up 3.43% over the past twelve months: Seeking Alpha This is an impressive result considering that nearly everything outside of the fossil fuel energy sector is down over the same period. When we consider that the fund was paying out a high yield over this entire time period, it becomes even more impressive and easily makes this one of the only closed-end funds that managed to deliver a positive total return to investors this year. This alone will likely appeal to income-focused investors. As my regular readers on the topic of closed-end funds are no doubt well aware, I do not typically like to see any individual asset in a fund account for more than 5% of the fund's assets. This is because this is approximately the point at which that asset begins to expose the portfolio to idiosyncratic risk. Idiosyncratic, or company-specific, risk is that risk that any asset possesses that is independent of the market as a whole. This is the risk that we aim to eliminate through diversification but if the asset accounts for too much of the portfolio, then this risk will not be completely diversified away. Thus, the concern is that some event may occur that causes the price of a given asset to decline when the market does not, and if this asset accounts for too much of the portfolio, then it may end up dragging the entire fund down with it. Fortunately, though, we do not appear to have to worry about this problem with this fund as there is no individual asset that accounts for an outsized proportion of the portfolio. Overall, this one appears to be quite well-diversified. Leverage One of the advantages that closed-end funds enjoy over other types of funds is the ability to use certain strategies that have the effect of boosting their portfolio yield beyond that of any of the underlying assets. One of these strategies that are employed by the DNP Select Income Fund is the use of leverage. Basically, the fund borrows money and then uses those borrowed funds to purchase more assets. As long as the purchased assets deliver a higher total return than the amount that the fund has to pay on the borrowed funds, this strategy works pretty well to boost the overall portfolio yield. As the fund is able to borrow at institutional rates, which are much lower than retail rates, this will usually be the case. However, the use of leverage is a double-edged sword. This is because debt boosts both gains and losses. As such, we want to ensure that the fund is not employing too much leverage since this would expose us to too much risk. I do not generally like to see a fund employ leverage that accounts for more than a third of its assets for this reason. The DNP Select Income Fund is abiding by this restriction as the fund's levered assets currently account for 25.78% of the portfolio. As such, it appears that this fund is currently striking a pretty good balance between risk and return. We do not appear to be exposed to a particularly high level of risk due to the fund's leverage here. Distribution Analysis As stated earlier in this article, the fund's primary objective is to provide its investors with a high level of current income. It does this by investing in a leveraged portfolio of utility stocks and other sectors that are fairly well-known for their high yields. Thus, we will likely conclude that the fund itself boasts a very respectable yield. This is certainly the case as the DNP Select Income Fund currently pays a monthly distribution of $0.0650 per share ($0.78 per share annually), which gives the fund a 6.98% yield at the current price. As is the case with most Duff & Phelps funds, this one has been remarkably consistent with its distribution over the years as it has maintained the same distribution since 1997: CEF Connect This is a remarkable track record that is easily one of the best that we will find in the entire closed-end universe. Unfortunately, it does fail to achieve the fund's objective of delivering income growth over time. Still, the general consistency here will likely appeal to those investors that are looking for a stable and secure source of income with which to pay their bills or otherwise support their lifestyles. Unfortunately, those same investors might be a bit concerned about the large return of capital distributions that the fund has been making over the past few years: Fidelity Investments The reason why this may be concerning is that a return of capital distribution can be a sign that the fund is returning the investors' own money back to them. This is obviously not sustainable over any sort of extended period. However, there are other things that can cause a distribution to be classified as a return of capital, such as distributing unrealized capital gains to the investors. As such, we should investigate to determine exactly how the fund is financing these distributions and how sustainable they are likely to be.Seeking Alpha • Oct 04
DNP And UTG: A Switch Makes Sense
Summary All investments compete against each other and the risk-free rate. While we don't consider the utilities sector particularly attractive, there are always opportunities to make a buck. Here we present our view of DNP Select Income Fund & Reaves Utility Income Fund and tell you why we think a switch is warranted. Investing is an absolute game and positive total returns are key. But there is also a relative aspect where you can upgrade your portfolio and reduce risks in a way that helps you lose less money if things go south. We are going to talk about that today and do so in relation to two extremely popular funds. Since we have covered both funds previously, we will give only a brief overview of our previous stance and then dive into why we think a big switch will likely protect you. Reaves Utility Income Fund (UTG) UTG is a popular fund with the dividend crowd and we haven't really been too excited about it. We had a Sell Rating on this in April, but as the fund tanked, we upgraded it to a Hold rating in June. A key reason for our upgrade in June was that the utilities sector had fallen enough to merit a less hostile stance and we did feel that the short bet could be pressed any more. DNP Select Income Fund (DNP) We covered this one for the first time in June and the fund has definitely not gone in the direction we expected. While we painted a much deserved Sell rating on this, it is actually higher now than when we wrote on it and has outperformed the market. Data by YCharts Outlook On The Sector Utilities have two major forces acting on the sector today. On one hand, they represent the epitome of defensiveness and are least likely to see big earnings downgrades in a recession. Hence the money managers who need to be 100% invested, are flocking here like there is no tomorrow. On the other hand, this is by far the most rate sensitive sector there is and higher interest rates should hurt it. In the shorter run, obviously it appears that the first criteria is winning. Money managers were badly positioned for a rate hike cycle with many insisting in late 2021 that the Federal Reserve would not raise rates even once. They were just as badly prepared for inflation, blindsided no doubt by the Federal Reserve's complete ignorance of the rising threat late last year. So the dash out of Class C thrash (we are talking about growth stocks trading 20X sales multiples) has made utilities relatively well bid. Utilities are also the least sensitive to a stronger US Dollar (duh) and that has also helped. We believe this has now played out in full or close to it. The second round of investing will be flying out of utilities and into bonds. The sector is also one of the most heavily indebted ones and the recent round of earnings growth has been provided primarily by moving to lower rate debt. With that in full reverse, utilities are likely to start disappointing investors. We remain bearish on the sector. A Relative Outlook On The Two Funds DNP and UTG stick to the utility sector and overall the holdings are quite similar between the funds. There are some notable differences in the top 10 and we can see that DNP runs a less concentrated shop than UTG. CEF Connect-DNP UTG has almost 5% in the Canadian telecommunications giant BCE Inc. (BCE) and shares Ameren Corp. (AEE) and Alliant Energy Corp (LNT) with DNP. CEF Connect-UTG Overall, DNP has 134 holdings vs just 44 for UTG. We don't see that as a material difference as most investors won't put all their money in one of these funds. Hence, the diversification achieved by UTG is more than sufficient. DNP has done quite well over the long run and the 10-year total annual return on NAV has been 8.34%. UTG has done okay over the same timeframe with a total annual return of 7.74% on NAV. Both funds use leverage and we think that is likely to bite both of them in the coming months. UTG uses about 19.71% net leverage and all debt is floating. On April 27, 2022, the Fund entered into a Credit Agreement with State Street Bank and Trust Company. Under the terms of the Credit Agreement, the Fund is allowed to borrow up to $650,000,000. Interest is charged at a rate of the one month SOFR ("Secured Overnight Financing Rate") plus 0.65%. Borrowings under the Credit Agreement are secured by all or a portion of assets of the Fund that are held by the Fund's custodian in a separate account (the "pledged collateral"). Borrowing commenced under the terms of the Credit Agreement on April 27, 2022. The Credit Agreement with State Street Bank and Trust Company replaced the credit facility previously in place with Pershing LLC. Source: UTG Semi-Annual Report DNP on last check used 27%, and there was a mix of fixed and floating rates utilized. The use of leverage enables the Fund to borrow at short-term rates and invest in higher yielding securities. As of April 30, 2022, the Fund had $1.105 billion of total leverage outstanding, which consisted of: i) $75 million of floating rate preferred stock, ii) $132 million of fixed rate preferred stock, iii) $300 million of fixed rate secured notes and (iv) $598 million of floating rate secured debt outstanding under a committed loan facility. On that date the total amount of leverage represented approximately 25% of the Fund's total assets. Source: DNP Semi-Annual Report The two funds are overall similar with the major difference shown so far as being that of more leverage used by DNP. This may be a subtle difference but one likely to bite DNP. The biggest factor here and one that has confounded many is the difference in the premiums these two currently sport. DNP's 20.81% is rather astounding and one reason our earlier bear call has not panned out. The premium actually expanded as the NAV dropped from June.Seeking Alpha • Sep 22
DNP Select Income Fund declares $0.065 dividend
DNP Select Income Fund (NYSE:DNP) declares $0.065/share monthly dividend, in line with previous. Forward yield 7.02% Payable Nov. 10; for shareholders of record Oct. 31; ex-div Oct. 28. Payable Dec. 10; for shareholders of record Nov. 30; ex-div Nov. 29. Payable Jan. 10; for shareholders of record Dec. 30; ex-div Dec. 29. See DNP Dividend Scorecard, Yield Chart, & Dividend Growth.Seeking Alpha • Sep 03
DNP: Utility Sector Valuations At Extremes
Summary DNP is a utility sector focused CEF. It has paid a consistent $0.065/month distribution for years. With sector valuations at extremes, it may be more difficult for the fund to generate sufficient returns to maintain distributions without resorting to return of capital. Recently, I reviewed the Utility-focused Reaves Utility Income Fund (UTG) with the conclusion that UTG may underperform other utility funds due to its floating rate leverage exposure. In this article, I will review another Utility sector focused fund, the DNP Select Income Fund (DNP) and compare it to the UTG. Finally, I will provide some general thoughts on the utility sector in general. It is understandable why so many CEF investors swear by DNP, as it has consistently paid out its $0.78/share distribution for over 2 decades. Management has also navigated the current challenging environment well by investing in energy mid-stream companies that have outperformed. However, given utility sector P/E multiples are at all time highs, future returns that can sustain the distribution may be more difficult. Higher interest rates can also hurt the NAV from P/E contraction. I would suggest investors stay on the sidelines for now until utility sector P/E multiples ease to more reasonable levels. Fund Overview The DNP Select Income Fund is one of the largest and longest running closed-end-fund ("CEF") in existence with $3.9 billion in market cap. It first offered shares to investors in 1987, and has continuously paid a distribution to unitholders for 35 years. DNP's main objectives are current income and long-term growth of the income. As one of the most popular CEFs in the market, DNP trades at a significant premium to its NAV. Currently, that premium is 16.8% (Figure 1). Figure 1 - DNP Premium to NAV (CEFConnect.com) Strategy The strategy of DNP is to invest primarily in a portfolio of equity and fixed income securities of companies in the utility sector, taking advantage of the income and growth characteristics of utilities over the long run. Under normal circumstances, at least 65% of the fund's assets will be invested in utility companies engaged in the production, transmission, or distribution of electric energy, gas, or telephone services. There is a limit that not more than 25% of assets may be invested in non-utility companies, and not more than 20% of assets may be invested in foreign issuers. DNP also employs leverage to enhance returns. As of the April 2022 semi-annual report, the fund had $1.1 billion in leverage (debt and preferred shares) on $4.45 billion in total assets for ~25% leverage (Figure 1). DNP's leverage is part floating rate and part fixed rate. Figure 2 - DNP leverage (DNP 2022 Semi Annual Report) Portfolio Holdings The portfolio holdings as presented on the fund's webpage is a bit dated, corresponding to the April semi-annual report. Seeking Alpha appears to have more up to date portfolio holdings details, from July 31st (Figure 3). In any case, we can see that DNP primarily invests in utilities and telecoms, with 77% and 9% weighting respectively. Figure 3 - DNP Holdings (Seeking Alpha) The fund also has a 19% weighting in energy, which if we go through the semi-annual report, are primarily from energy mid-stream companies like Cheniere Energy (LNG) and Enbridge (ENB). Returns The goal of an income fund like DNP is to make steady returns that can fund its distribution, and hopefully grow the distribution over time. In terms of steady returns, DNP has certainly achieved it in the past, with a 10 year annualized NAV return of 10.7% (Figure 4). Figure 4 - DNP Returns (DNP 2022 Semi Annual Report) Relative to peers, DNP also compares well, being in the top two quartile 7 out of the last 10 years (Figure 5). The YTD return of 4.5% is also a positive surprise. Given the rise in interest rates, one would have expected a floating rate leveraged fund like DNP to lag. Figure 5 - DNP vs. peers (morningstar.com) I believe the explanation for the strong YTD performance is from DNP's ~20% portfolio weight in energy mid-stream companies that have outperformed. For reference, the Global X MLP ETF (MLPA) has returned 19% YTD. Kudos to the fund managers for finding ways to outperform in a challenging year! Distribution & Yield As mentioned above, DNP has had 35 years of continuous distributions, with the current distribution set at $0.065/month, unchanged since 1997. This works out to 6.9% current yield based on the market price of DNP shares. On NAV, the distribution yield is 8%. DNP also pays a periodic special distribution at the end of the year, although the last special distribution paid was in 2005. In recent years, DNP's distribution breakdown has trended towards realized gains and return of capital ("ROC"). Fiscal YTD, 32% of the distribution has come from net investment income ("NII"), 62% from realized gains, and 6% from ROC (Figure 6). In Fiscal 2021, the breakdown was 32%, 55%, and 13% respectively. Figure 6 - DNP Fiscal YTD distribution breakdown (dpimc.com) This shift in the distribution breakdown is to be expected, as interest rates have been held low for many years, so high yielding assets like utilities have been bid up in price as a result. NII% will naturally be lower and the fund will be harvesting high priced securities to fund its distribution. Fees Management fees for DNP is above average, but reasonable. The fund advisor, Duff & Phelps Investment Management Co. earns a quarterly fee at an annual rate of 0.60% of the 'Average Weekly Managed Assets' (total assets less accrued liabilities) up to $1.5 billion and 0.50% above. Total expenses, excluding interest expense, as a % of average net assets available to common stock, was 0.98% for the first half of Fiscal 2022 and 1.00% in Fiscal 2021. Including interest, the figures were 1.70% and 1.77% respectively. For context, the Utilities Select Sector SPDR ETF (XLU) has an expense ratio of 0.10%. Risks As mentioned above, in an environment of low interest rates, long duration assets like utilities have been bid up, leading to lower investment incomes and higher prices. The main concern I have is that the prices of these long duration assets have been bid up to extreme levels in recent years. From Figure 7, we can see that Utilities sector P/E multiples are currently at all time highs, so future returns for the sector, and the DNP fund by association, will most likely have to rely on earnings growth. Figure 7 - Utility sector P/E (yardeni.com) However, looking at the earnings growth for the Utility sector, we note that with the exception of 2021, earnings growth has been below 6% (Figure 8). Consensus earnings growth for 2022 and 2023 are also only 5-6%. Going forward, it may be more difficult for DNP to generate sufficient returns (either through NII or price appreciation) to cover the 8% of NAV distribution, if P/E multiples cannot expand further from already extreme levels. We may see increasing use of ROC and gradual NAV decline as a result. Figure 8 - Utility sector earnings growth (yardeni.com)Seeking Alpha • Jun 20
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DNP: Strong Utilities CEF, 7.3% Distribution Yield, Market-Beating NAV Returns
DNP is a leveraged utilities CEF. The fund offers investors a strong 7.3% distribution yield, an outstanding distribution and performance track record, and is trading at a competitive price. An overview of the fund follows.Aktionärsrenditen
| DNP | US Capital Markets | US Markt | |
|---|---|---|---|
| 7D | 1.4% | 3.0% | 0.5% |
| 1Y | 11.1% | 11.2% | 23.5% |
Rendite im Vergleich zur Industrie: DNP wie die Branche US Capital Markets , die im vergangenen Jahr eine Rendite von 11.2 erzielte.
Rendite vs. Markt: DNP hinter dem Markt US zurück, der im vergangenen Jahr eine Rendite von 23.5 erzielte.
Preisvolatilität
| DNP volatility | |
|---|---|
| DNP Average Weekly Movement | 1.8% |
| Capital Markets Industry Average Movement | 3.5% |
| Market Average Movement | 7.2% |
| 10% most volatile stocks in US Market | 16.7% |
| 10% least volatile stocks in US Market | 3.1% |
Stabiler Aktienkurs: DNP hatte in den letzten 3 Monaten im Vergleich zum US -Markt keine signifikante Preisvolatilität.
Volatilität im Zeitverlauf: DNPDie wöchentliche Volatilität (2%) ist im vergangenen Jahr stabil geblieben.
Über das Unternehmen
| Gegründet | Mitarbeiter | CEO | Website |
|---|---|---|---|
| 1986 | n/a | David Grumhaus | www.dnpselectincome.com |
DNP Select Income Fund Inc. ist ein geschlossener, gemischter Investmentfonds, der von Virtus Investment Partners, Inc. aufgelegt wurde. Der Fonds wird von Duff & Phelps Investment Management Co. verwaltet. Er investiert in die öffentlichen Aktien- und Rentenmärkte der Vereinigten Staaten.
DNP Select Income Fund Inc.'s Grundlagenzusammenfassung
| DNP grundlegende Statistiken | |
|---|---|
| Marktanteil | US$4.06b |
| Gewinn(TTM) | US$430.61m |
| Umsatz(TTM) | US$161.69m |
9.4x
Kurs-Gewinn-Verhältnis 25.1x
Kurs-Umsatz-VerhältnisIst DNP zu teuer?
Siehe Fair Value und BewertungsanalyseErträge & Einnahmen
| DNP Gewinn- und Verlustrechnung (TTM) | |
|---|---|
| Einnahmen | US$161.69m |
| Kosten der Einnahmen | US$0 |
| Bruttogewinn | US$161.69m |
| Sonstige Ausgaben | -US$268.92m |
| Gewinn | US$430.61m |
Zuletzt gemeldete Gewinne
Oct 31, 2025
Datum des nächsten Gewinnberichts
k.A.
| Gewinn per Aktie (EPS) | 1.14 |
| Bruttomarge | 100.00% |
| Nettogewinnspanne | 266.32% |
| Schulden/Eigenkapital-Verhältnis | 31.6% |
Wie hat sich DNP auf lange Sicht entwickelt?
Historische Performance und VergleicheDividenden
7.2%
Aktuelle Dividendenrendite68%
AusschüttungsquoteZahlt DNP eine zuverlässige Dividende?
Siehe DNP Dividendenhistorie und Benchmarks| DNP Select Income Fund Dividendentermine | |
|---|---|
| Ex-Dividenden Datum | Jun 30 2026 |
| Datum der Dividendenzahlung | Jul 10 2026 |
| Tage bis Ex-Dividende | 15 days |
| Tage bis zum Datum der Dividendenzahlung | 25 days |
Zahlt DNP eine zuverlässige Dividende?
Siehe DNP Dividendenhistorie und BenchmarksUnternehmensanalyse und Finanzdaten Status
| Daten | Zuletzt aktualisiert (UTC-Zeit) |
|---|---|
| Unternehmensanalyse | 2026/06/15 11:54 |
| Aktienkurs zum Tagesende | 2026/06/12 00:00 |
| Gewinne | 2025/10/31 |
| Jährliche Einnahmen | 2025/10/31 |
Datenquellen
Die in unserer Unternehmensanalyse verwendeten Daten stammen von S&P Global Market Intelligence LLC. Die folgenden Daten werden in unserem Analysemodell verwendet, um diesen Bericht zu erstellen. Die Daten sind normalisiert, was zu einer Verzögerung bei der Verfügbarkeit der Quelle führen kann.
| Paket | Daten | Zeitrahmen | Beispiel US-Quelle * |
|---|---|---|---|
| Finanzdaten des Unternehmens | 10 Jahre |
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| Konsensschätzungen der Analysten | +3 Jahre |
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| Marktpreise | 30 Jahre |
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| Eigentümerschaft | 10 Jahre |
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| Verwaltung | 10 Jahre |
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| Wichtige Entwicklungen | 10 Jahre |
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* Beispiel für US-Wertpapiere, für nicht-US-amerikanische Wertpapiere werden gleichwertige regulatorische Formulare und Quellen verwendet.
Sofern nicht anders angegeben, beziehen sich alle Finanzdaten auf einen Jahreszeitraum, werden aber vierteljährlich aktualisiert. Dies wird als Trailing Twelve Month (TTM) oder Last Twelve Month (LTM) Daten bezeichnet. Erfahren Sie mehr.
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Analysten-Quellen
DNP Select Income Fund Inc. wird von 0 Analysten beobachtet. 0 dieser Analysten hat die Umsatz- oder Gewinnschätzungen übermittelt, die als Grundlage für unseren Bericht dienen. Die von den Analysten übermittelten Daten werden im Laufe des Tages aktualisiert.