company background image
DNP

DNP Select Income FundNYSE:DNP Stock Report

Last Price

US$11.05

Market Cap

US$3.8b

7D

0.09%

1Y

6.1%

Updated

19 Jan, 2022

Data

Company Financials
DNP fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance1/6
Financial Health4/6
Dividends4/6

DNP Stock Overview

DNP Select Income Fund Inc. is a closed ended balanced mutual fund launched by Virtus Investment Partners, Inc.

Price History & Performance

Summary of all time highs, changes and price drops for DNP Select Income Fund
Historical stock prices
Current Share PriceUS$11.05
52 Week HighUS$11.17
52 Week LowUS$9.75
Beta0.54
1 Month Change2.41%
3 Month Change1.84%
1 Year Change6.15%
3 Year Change1.01%
5 Year Change3.76%
Change since IPO26.29%

Recent News & Updates

Oct 22

DNP: A High-Yield CEF With Time-Tested Distributions

DNP is a closed-end fund managed by Duff & Phelps that utilizes a utilities-focused portfolio to drive current income and total return. The fund is one of the oldest publicly-traded CEFs and has never cut its distribution. We dive into the fund and discuss DNP’s current outlook.

Aug 10

Evaluating CEFs: DNP Offers Stable Income With No Drama

DNP offers a yield of 7.3%, quite attractive if the distribution can be supported. I continue my series looking at CEFs beyond the yield. With increasing NAV and a well covered distribution, the 6.5 cents a month distribution is worth buying under $11.

Jun 29

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.

Jun 20

DNP: The 7.50% Yield Is Nice But The Fund Looks Overpriced

Utilities tend to be solid investments for retirees because of their stable cash flows and high yields. DNP offers a substantially better yield than indexed utility funds at 7.50%. There is some excitement around electric utilities right now, but this appears to be unjustified as demand will not grow like some predict. The fund appears easily able to cover its distributions, which should be comforting to potential investors. The fund's premium is not as high as usual, but it still puts a great deal of faith in management and does not represent a bargain.

Dec 23

DNP: The Most Steady Monthly Payer, 7.47% Yield

Written by Nick Ackerman, co-produced by Stanford Chemist In a recent screening for funds with the lowest 1-year z-score, I came across DNP Select Income Fund (DNP). What is interesting about DNP is that for most investors familiar with closed-end funds, it continually comes to the top of the list for the fund with the largest premium. The real draw for most investors here is that DNP is one of the most steady monthly payers

Shareholder Returns

DNPUS Capital MarketsUS Market
7D0.09%-5.5%-4.6%
1Y6.1%24.6%7.7%

Return vs Industry: DNP underperformed the US Capital Markets industry which returned 25.7% over the past year.

Return vs Market: DNP underperformed the US Market which returned 10.2% over the past year.

Price Volatility

Is DNP's price volatile compared to industry and market?
DNP volatility
DNP Average Weekly Movement1.1%
Capital Markets Industry Average Movement0.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: DNP is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: DNP's weekly volatility (1%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1986n/aNathan Partainhttps://www.dnpselectincome.com

DNP Select Income Fund Inc. is a closed ended balanced mutual fund launched by Virtus Investment Partners, Inc. The fund is managed by Duff & Phelps Investment Management Co. It invests in the public equity and fixed income markets of the United States. For the fixed income portion, the fund invests in bonds. It seeks to invest in stocks of companies operating in the Utility sector.

DNP Select Income Fund Fundamentals Summary

How do DNP Select Income Fund's earnings and revenue compare to its market cap?
DNP fundamental statistics
Market CapUS$3.81b
Earnings (TTM)US$521.29m
Revenue (TTM)US$129.79m

7.3x

P/E Ratio

29.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DNP income statement (TTM)
RevenueUS$129.79m
Cost of RevenueUS$0
Gross ProfitUS$129.79m
Expenses-US$391.50m
EarningsUS$521.29m

Last Reported Earnings

Oct 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.51
Gross Margin100.00%
Net Profit Margin401.64%
Debt/Equity Ratio34.0%

How did DNP perform over the long term?

See historical performance and comparison

Valuation

Is DNP Select Income Fund undervalued compared to its fair value and its price relative to the market?

11.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DNP ($11.05) is trading below our estimate of fair value ($12.49)

Significantly Below Fair Value: DNP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DNP is good value based on its PE Ratio (7.3x) compared to the US Capital Markets industry average (15.5x).

PE vs Market: DNP is good value based on its PE Ratio (7.3x) compared to the US market (17x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DNP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DNP is good value based on its PB Ratio (1.2x) compared to the US Capital Markets industry average (42.2x).

Future Growth

How is DNP Select Income Fund forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

6.3%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as DNP Select Income Fund has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has DNP Select Income Fund performed over the past 5 years?

-3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DNP has a large one-off gain of $445.4M impacting its October 31 2021 financial results.

Growing Profit Margin: DNP became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: DNP's earnings have declined by 3.3% per year over the past 5 years.

Accelerating Growth: DNP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: DNP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (86.4%).


Return on Equity

High ROE: DNP's Return on Equity (16.1%) is considered low.

Financial Health

How is DNP Select Income Fund's financial position?


Financial Position Analysis

Short Term Liabilities: DNP's short term assets ($54.0M) exceed its short term liabilities ($28.5M).

Long Term Liabilities: DNP's short term assets ($54.0M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: DNP's net debt to equity ratio (32.8%) is considered satisfactory.

Reducing Debt: DNP's debt to equity ratio has reduced from 37.3% to 34% over the past 5 years.

Debt Coverage: DNP's debt is not well covered by operating cash flow (13.9%).

Interest Coverage: DNP's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet

Dividend

What is DNP Select Income Fund current dividend yield, its reliability and sustainability?

7.06%

Current Dividend Yield


Upcoming Dividend Payment

TodayJan 20 2022Ex Dividend DateJan 28 2022Dividend Pay DateFeb 10 202213 days from Ex DividendBuy in the next 7 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: DNP's dividend (7.06%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: DNP's dividend (7.06%) is in the top 25% of dividend payers in the US market (3.48%)


Stability and Growth of Payments

Stable Dividend: DNP's dividends per share have been stable in the past 10 years.

Growing Dividend: DNP's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.4%), DNP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.

Management

How experienced are the management team and are they aligned to shareholders interests?

16.2yrs

Average board tenure


CEO

Nathan Partain (64 yo)

20.92yrs

Tenure

Mr. Nathan Ivey Partain, CFA serves as Consultant at Duff & Phelps Investment Management Co. Earlier he served as Director at Duff & Phelps Investment Management Co. since May 2007 and Co-Chief Investment...


Board Members

Experienced Board: DNP's board of directors are seasoned and experienced ( 16.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.1%.


Top Shareholders

Company Information

DNP Select Income Fund Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: DNP Select Income Fund Inc.
  • Ticker: DNP
  • Exchange: NYSE
  • Founded: 1986
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Implied Market Cap: US$3.814b
  • Shares outstanding: 345.20m
  • Website: https://www.dnpselectincome.com

Location

  • DNP Select Income Fund Inc.
  • 200 South Wacker Drive
  • Suite 500
  • Chicago
  • Illinois
  • 60606
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:33
End of Day Share Price2022/01/19 00:00
Earnings2021/10/31
Annual Earnings2021/10/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.