Statement Pursuant to Section 19(a) of the Investment Company Act of 1940: DDF
Delaware Investments Dividend and Income Fund, Inc. (NYSE: DDF) announced a final distribution of
- Final distribution of $0.202 per share providing immediate income to investors.
- Successful reorganization into abrdn Global Dynamic Dividend Fund expected to enhance fund performance.
- Distribution includes a significant return of capital (10.1%), which may suggest insufficient income generation.
- The fund has distributed more than its income and realized gains for the fiscal year, indicating potential unsustainability.
CUSIP #: 245915103
The following table sets forth the estimated amount of the sources of distribution for purposes of Section 19 of the Investment Company Act of 1940, as amended, and the related rules adopted thereunder. The Fund estimates the following percentages, of the total distribution amount per share, attributable to (i) net investment income, (ii) net realized short-term capital gain, (iii) net realized long-term capital gain and (iv) return of capital or other capital source. These percentages are disclosed for the current distribution as well as the fiscal year-to-date cumulative distribution amount per share for the Fund.
Current Distribution from: |
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Per Share ($) |
% |
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Net Investment Income |
0.0222 |
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Net Realized Short-Term Capital Gain |
0.0045 |
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Net Realized Long-Term Capital Gain |
0.1549 |
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Return of Capital or other Capital Source |
0.0204 |
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Total (per common share) |
0.2020 |
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Fiscal Year-to-Date Cumulative |
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Distributions from: |
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Per Share ($) |
% |
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Net Investment Income |
0.0405 |
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Net Realized Short-Term Capital Gain |
0.0045 |
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Net Realized Long-Term Capital Gain |
0.2066 |
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Return of Capital or other Capital Source |
0.0612 |
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Total (per common share) |
0.3128 |
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Shareholders should not draw any conclusions about the Fund’s investment performance from the amount of this distribution or from the terms of the Fund’s managed distribution policy. The amounts and sources of distributions reported in this 19(a) Notice are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
Subject to the foregoing, the Fund estimates (as of the date hereof) that it has distributed more than its income and net realized capital gains for the fiscal year ending
Presented below are return figures, based on the change in the Fund’s Net Asset Value per share (“NAV”), compared to the annualized distribution rate for this current distribution as a percentage of the NAV on the last business day of the month prior to distribution record date.
Fund Performance and Distribution Information
Fiscal Year to Date ( |
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Annualized Distribution Rate as a Percentage of NAV^ |
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Cumulative Distribution Rate on NAV^^ |
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Cumulative Total Return on NAV* |
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Average Annual Total Return on NAV for the 5 Year Period Ending 01/31/2023** |
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^ Based on the Fund’s NAV as of
^^ Cumulative distribution rate is the cumulative amount of distributions paid during the Fund’s fiscal year ending
*Cumulative total return is based on the change in NAV including distributions paid and assuming reinvestment of these distributions for the period
**The 5 year average annual total return is based on change in NAV including distributions paid and assuming reinvestment of these distributions and is through the last business day of the month prior to the month of the current distribution record date.
While the NAV performance may be indicative of the Fund’s investment performance, it does not measure the value of a shareholder’s investment in the Fund. The value of a shareholder’s investment in the Fund is determined by the Fund’s market price, which is based on the supply and demand for the Fund’s shares in the open market.
About DDF
The Fund’s primary investment objective is to seek high current income; capital appreciation is a secondary objective. The Fund seeks to achieve its objectives by investing, under normal circumstances, at least
The Fund has implemented a managed distribution policy. Under the policy, the Fund is managed with a goal of generating as much of the distribution as possible from net investment income and short-term capital gains. The balance of the distribution will then come from long-term capital gains to the extent permitted, and if necessary, a return of capital. Even though the Fund may realize current year capital gains, such gains may be offset, in whole or in part, by the Fund’s capital loss carryovers from prior years.
Currently under the Fund’s managed distribution policy, the Fund makes monthly distributions to common shareholders at a targeted annual distribution rate of
The payment of dividend distributions in accordance with the managed distribution policy may result in a decrease in the Fund’s net assets. A decrease in the Fund’s net assets may cause an increase in the Fund’s annual operating expenses and a decrease in the Fund’s market price per share to the extent the market price correlates closely to the Fund’s net asset value per share. The managed distribution policy may also negatively affect the Fund’s investment activities to the extent that the Fund is required to hold larger cash positions than it typically would hold or to the extent that the Fund must liquidate securities that it would not have sold, for the purpose of paying the dividend distribution. The managed distribution policy may, under certain circumstances, cause the amounts of taxable distributions to exceed the amount minimally required to be distributed under the tax rules, such excess will be taxable as ordinary income to the extent loss carry forwards reduce the required amount of capital gains distributions in that year. Investors should consult their tax advisor regarding federal, state, and local tax considerations that may be applicable in their particular circumstances.
About Macquarie Asset Management
Macquarie Asset Management is a global asset manager that aims to deliver positive impact for everyone. Trusted by institutions, pension funds, governments, and individuals to manage more than
Advisory services are provided by Delaware Management Company, a series of
Other than Macquarie Bank Limited ABN 46 008 583 542 (“Macquarie Bank”), any Macquarie Group entity noted in this material is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (
1 As of
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Investors
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866 437-0252
delawarefunds.com/closed-end
Media contacts
347 302-3000
Lee.Lubarsky@macquarie.com
Source: Macquarie Investment Management
FAQ
What was the distribution amount for Delaware Investments Dividend and Income Fund (DDF) in March 2023?
When was the record date for the DDF final distribution?
What is the significance of the reorganization into abrdn Global Dynamic Dividend Fund (AGD)?
What are the sources of DDF's final distribution for March 2023?