Statement Pursuant to Section 19(a) of the Investment Company Act of 1940: DDF

Rhea-AI Summary

On January 28, 2022, Delaware Investments Dividend and Income Fund (NYSE: DDF) announced a monthly distribution of $0.0684 per share to shareholders of record as of January 21, 2022. The distribution sources include 22.1% from net investment income, 18.9% from net short-term capital gains, and 59.0% from long-term capital gains. The fund aims for a managed distribution policy of 7.5% of its average net asset value to ensure consistent income. The estimated return of capital is 0.0000, indicating no return of principal.

Positive

• Monthly distribution of $0.0684 per share reflects a commitment to return capital to shareholders.
• Sources of distribution show a high percentage from long-term capital gains (59.0%) indicating potential profitability.
• Managed distribution policy targets an annual rate of 7.5%, providing a reliable income stream for investors.

Negative

• No return of capital suggests potential risks; investors may need to evaluate sustainability of distributions.
• The reliance on capital gains for distributions may expose investors to market volatility.

CUSIP #: 245915103

PHILADELPHIA--(BUSINESS WIRE)-- On January 28, 2022, Delaware Investments Dividend and Income Fund, Inc. (NYSE: DDF) (the “Fund”), a closed-end fund, paid a monthly distribution on its common stock of $0.0684 per share to shareholders of record at the close of business on January 21, 2022.

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:
		Per Share ($)		%
Net Investment Income		0.0151		22.1%
Net Realized Short-Term Capital Gain		0.0129		18.9%
Net Realized Long-Term Capital Gain		0.0404		59.0%
Return of Capital or other Capital Source		0.0000		0.0%
Total (per common share)		0.0684		100.0%
Fiscal Year-to-Date Cumulative
Distributions from:
		Per Share ($)		%
Net Investment Income		0.0383		8.8%
Net Realized Short-Term Capital Gain		0.0129		3.0%
Net Realized Long-Term Capital Gain		0.3831		88.2%
Return of Capital or other Capital Source		0.0000		0.0%
Total (per common share)		0.4343		100.0%

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.

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 & Distribution Information

Fiscal Year to Date (12/01/2021 through 12/31/2021)
Annualized Distribution Rate as a Percentage of NAV^		7.45%
Cumulative Distribution Rate on NAV^^		3.94%
Cumulative Total Return on NAV*		7.85%
Average Annual Total Return on NAV for the 5 Year Period Ending 12/31/2021**		8.50%

^ Based on the Fund’s NAV as of December 31, 2021.

^^ Cumulative distribution rate is the cumulative amount of distributions paid during the Fund’s fiscal year ending November 30, 2022 based on the Fund’s NAV as of December 31, 2021.

*Cumulative total return is based on the change in NAV including distributions paid and assuming reinvestment of these distributions for the period December 1, 2021 through December 31, 2021.

**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 65% of its total assets in income-generating equity securities, including dividend-paying common stocks, convertible securities, preferred stocks, and other equity-related securities, which may include up to 25% in real estate investment trusts (REITs) and real estate industry operating companies. Up to 35% of the Fund's total assets may be invested in nonconvertible debt securities consisting primarily of high-yield, high-risk corporate bonds. In addition, the Fund utilizes leveraging techniques in an attempt to obtain a higher return for the Fund. There is no assurance that the Fund will achieve its investment objectives.

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 7.5% of the Fund’s average net asset value (“NAV”) per share. The Fund will calculate the average NAV per share from the previous three full months immediately prior to the distribution based on the number of business days in those three months on which the NAV is calculated. The distribution will be calculated as 7.5% of the prior three month’s average NAV per share, divided by 12. The Fund will generally distribute amounts necessary to satisfy the Fund’s managed distribution policy and the requirements prescribed by excise tax rules and Subchapter M of the Internal Revenue Code. This distribution methodology is intended to provide shareholders with a consistent, but not guaranteed, income stream and a targeted annual distribution rate and is intended to narrow the discount between the market price and the NAV of the Fund’s common shares, but there is no assurance that the policy will be successful in doing so. The methodology for determining monthly distributions under the Fund’s managed distribution policy will be reviewed at least annually by the Fund’s Board of Directors, and the Fund will continue to evaluate its distribution in light of ongoing market conditions.

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 $US531 billion in assets globally¹, we provide access to specialist investment expertise across a range of capabilities including fixed income, equities, multi-asset solutions, private credit, infrastructure, renewables, natural assets, real estate, and transportation finance.

Advisory services are provided by Macquarie Investment Management Business Trust, a registered investment advisor. Macquarie Asset Management is part of Macquarie Group, a diversified financial group providing clients with asset management, finance, banking, advisory and risk and capital solutions across debt, equity, and commodities. Founded in 1969, Macquarie Group employs approximately 16,400 people in 31 markets and is listed on the Australian Securities Exchange. For more information about Delaware Funds by Macquarie^®, visit delawarefunds.com or call 800 523-1918.

Other than Macquarie Bank Limited ABN 46 008 583 542 (“Macquarie Bank”), any Macquarie Group entity noted in this material is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these other Macquarie Group entities do not represent deposits or other liabilities of Macquarie Bank. Macquarie Bank does not guarantee or otherwise provide assurance in respect of the obligations of these other Macquarie Group entities. In addition, if this document relates to an investment, (a) the investor is subject to investment risk including possible delays in repayment and loss of income and principal invested and (b) none of Macquarie Bank or any other Macquarie Group entity guarantees any particular rate of return on or the performance of the investment, nor do they guarantee repayment of capital in respect of the investment.

¹ As at 30 September 2021

© 2022 Macquarie Management Holdings, Inc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220128005453/en/

Investors

Computershare

866 437-0252

delawarefunds.com/closed-end

Media contacts

Lee Lubarsky

347 302-3000

Lee.Lubarsky@macquarie.com

Sarah Stein

212 231-0323

Sarah.Stein@macquarie.com

Source: Macquarie Investment Management

FAQ

What is the recent distribution amount for DDF?

Delaware Investments Dividend and Income Fund (DDF) announced a distribution of $0.0684 per share on January 28, 2022.

What are the sources of the distribution for DDF?

The distribution is sourced from 22.1% net investment income, 18.9% net short-term capital gain, and 59.0% net long-term capital gain.

How does the managed distribution policy work for DDF?

DDF's managed distribution policy aims to provide a consistent income stream, targeting an annual distribution rate of 7.5% of the average net asset value.

When was the record date for the recent DDF distribution?

The record date for the recent distribution was January 21, 2022.

What is the expected return of capital for DDF's recent distribution?

The expected return of capital for DDF's recent distribution is $0.0000.