DNP Select Income Fund Announces Dividends and Sources of Distribution

Rhea-AI Summary

The Board of Directors of DNP Select Income Fund (NYSE: DNP) has announced the payment of dividends on its common stock for the upcoming months. A 6.5 cents per share dividend will be paid on the following dates: August 12, 2024, September 10, 2024, and October 10, 2024. These distributions are part of DNP's Managed Distribution Plan, ensuring a consistent 6.5 cent per share payout. If investment income is insufficient, distributions may include long-term capital gains or return of capital. For May 2024, the distribution of $0.065 per share comprised 29% net investment income, 46% long-term capital gains, and 25% return of capital. The fund's five-year average annual total return on NAV is 5.88%, with an annualized current distribution rate of 10.23%. Cumulative total return on NAV for the fiscal YTD is 6.37%, and cumulative fiscal year distributions as a percentage of NAV is 3.41%.

Positive

• DNP has maintained a consistent distribution rate of 6.5 cents per share, providing predictable income for shareholders.
• The Managed Distribution Plan ensures regular payouts even if investment income fluctuates, enhancing investor confidence.
• The fund's five-year average annual total return on NAV is 5.88%, indicating steady performance.
• Cumulative total return on NAV for the fiscal YTD is 6.37%, reflecting positive investment outcomes.

Negative

• A significant portion (25%) of the May 2024 distribution was sourced from return of capital, which might not be sustainable long-term.
• The announcement indicates reliance on long-term capital gains (46%) to meet distribution targets, which could be volatile.
• There is no net realized short-term capital gain mentioned, potentially indicating lower short-term investment performance.

CHICAGO--(BUSINESS WIRE)-- The Board of Directors of DNP Select Income Fund Inc. (NYSE: DNP), a closed-end fund advised by Duff & Phelps Investment Management Co., today authorized the payment of dividends on its common stock as follows:

Cents Per Share	Ex-Dividend Date	Record Date	Payable Date
6.5	July 31, 2024	July 31, 2024	August 12, 2024
6.5	August 30, 2024	August 30, 2024	September 10, 2024
6.5	September 30, 2024	September 30, 2024	October 10, 2024

The Fund adopted a Managed Distribution Plan (the “Plan”) in 2007 to maintain its current 6.5 cent per share distribution rate. Under the Plan, the Fund will distribute all available investment income to its shareholders, consistent with the Fund’s primary objective. If and when sufficient investment income is not available on a monthly basis, the Fund will distribute long-term capital gains and/or return of capital to its shareholders in order to maintain the 6.5 cent per share distribution level.

The following table sets forth the estimated amounts of the Fund’s current monthly distribution, paid on June 10, 2024, together with the cumulative distributions paid this fiscal year to date from the following sources. The fiscal year is from November 1, 2023 to October 31, 2024. All amounts are expressed per share of common stock based on U.S. generally accepted accounting principles, which may differ from federal income tax regulations.

Notification of Sources of Distribution Distribution Period: May 2024 Distribution Amount Per Share of Common Stock: $0.065
Distribution Estimates	May 2024		Fiscal YTD
	Per Share Amount	% of Current Distribution	Per Share Amount	% of Cumulative Distributions
Net Investment Income	$0.019	29%	$0.105	23%
Net Realized Short-Term Capital Gains	-	-	-	-
Net Realized Long-Term Capital Gains	0.030	46%	0.246	54%
Return of Capital (or Other Capital Source)	0.016	25%	0.104	23%
Total (per common share)	$0.065	100%	$0.455	100%

February 29, 2024
Average annual total return* on NAV for the 5 years ended	5.88%
Annualized current distribution rate as a percentage of NAV	10.23%
Cumulative total return on NAV for the fiscal YTD	6.37%
Cumulative fiscal year distributions as a percentage of NAV	3.41%
* Simple arithmetic average of each of the past five annual returns.

You should not necessarily draw any conclusions about the Fund’s investment performance from the amount of these distributions or from the terms of the Fund’s Plan.

The amounts and sources of distributions reported in this 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 the fiscal year and may be subject to changes based on tax regulations. The Fund or your broker 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.

The Fund will issue a separate 19(a) notice at the time of each monthly distribution using the most current financial information available.

About the Fund

DNP Select Income Fund Inc. is a closed-end diversified investment management company whose primary investment objectives are current income and long-term growth of income. The fund seeks to achieve these objectives by investing primarily in a diversified portfolio of equity and fixed income securities of companies in the public utilities industry. For more information, please visit dpimc.com/dnp or call (800) 864-0629.

About the Investment Adviser

Duff & Phelps Investment Management Co,. an affiliated manager of Virtus Investment Partners, Inc., began in 1932 as a fundamental research firm and has been managing assets since 1979. The firm seeks to provide specialty investment strategies that enhance client outcomes through active portfolio management and customized solutions, utilizing a process with values that include quality, reliability, and specialization. Investment strategies include U.S. and global real estate securities, global listed infrastructure, energy infrastructure, water, and clean energy.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240617335603/en/

Dianna P. Wengler, Donny C. Overton or Clayton J. Minor, (833) 604-3163

Source: DNP Select Income Fund Inc.

FAQ

What is the dividend amount for DNP stock in August 2024?

The dividend amount for DNP stock in August 2024 is 6.5 cents per share, payable on August 12, 2024.

How does the Managed Distribution Plan of DNP work?

DNP's Managed Distribution Plan maintains a consistent 6.5 cent per share distribution rate by using available investment income, long-term capital gains, and return of capital as necessary.

What is the annualized current distribution rate of DNP fund?

The annualized current distribution rate of DNP fund is 10.23%.

What was the source of DNP's May 2024 distribution?

DNP's May 2024 distribution was sourced 29% from net investment income, 46% from long-term capital gains, and 25% from return of capital.

When is the next dividend payment for DNP after September 2024?

The next dividend payment for DNP after September 2024 is on October 10, 2024, at 6.5 cents per share.

What is DNP’s five-year average annual total return on NAV?

DNP’s five-year average annual total return on NAV is 5.88%.