DNP Select Income Fund Announces Dividends And Sources Of Distribution
DNP Select Income Fund announced a dividend of 6.5 cents per share for multiple dates including July 29, August 30, and September 29, 2021. This distribution is part of its Managed Distribution Plan established in 2007, aimed at providing consistent income to shareholders. For fiscal year-to-date, the total distribution per share stands at $0.455, with net investment income contributing 30% of distributions. The fund's current annualized distribution rate is 8.00% of NAV, with expected returns from long-term capital gains and return of capital if needed.
- Consistent dividend payment of 6.5 cents per share demonstrates stability and commitment to shareholders.
- Managed Distribution Plan ensures shareholders receive regular income, even if it requires the use of capital gains or return of capital.
- Annualized current distribution rate is 8.00% of NAV, indicating a robust return relative to net asset value.
- Dependence on long-term capital gains and return of capital could raise sustainability concerns for future distributions.
CHICAGO, June 9, 2021 /PRNewswire/ -- 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 29, 2021 | July 30, 2021 | August 10, 2021 |
6.5 | August 30, 2021 | August 31, 2021 | September 10, 2021 |
6.5 | September 29, 2021 | September 30, 2021 | October 12, 2021 |
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, payable June 10, 2021, together with the cumulative distributions paid this fiscal year to date from the following sources. The fiscal year is from November 1, 2020 to October 31, 2021. 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 Estimates | May 2021 | Fiscal YTD | ||
Per Share | % of Current | Per Share | % of Cumulative | |
Net Investment Income | ||||
Net Realized Short- | - | - | 0.005 | |
Net Realized Long- | 0.009 | 0.250 | ||
Return of Capital (or | 0.036 | 0.055 | ||
Total | ||||
April 30, 2021 | |
Average annual total return* on NAV for the 5 years ended | |
Annualized current distribution rate as a percentage of NAV | |
Cumulative total return on NAV for the fiscal YTD | |
Cumulative fiscal year distributions as a percentage of NAV |
* 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 www.dpimc.com/dnp or call (800) 864-0629.
About the Investment Adviser
Duff & Phelps Investment Management Co. has more than 40 years of experience managing investment portfolios, including institutional separate accounts and open- and closed-end funds investing in utilities, infrastructure and real estate investment trusts (REITs). For more information, visit www.dpimc.com.
Duff & Phelps is a subsidiary of Virtus Investment Partners (NASDAQ: VRTS), a multi-boutique asset manager with
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SOURCE DNP Select Income Fund Inc.
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