DTF Tax-Free Income Inc. Announces Dividends
The Board of Directors of DTF Tax-Free Income Inc. (NYSE: DTF) has announced a dividend payment of $0.0325 per share, which is a $0.0075 decrease from the previous $0.04 monthly distribution. The dividends will be distributed on the following dates: October 29, 2021, November 30, 2021, and December 31, 2021. This adjustment is made in response to an extended environment of low interest rates affecting the Fund's earnings capacity, particularly impacting its ability to reinvest at competitive rates.
- Dividends are being issued regularly, providing income to shareholders.
- The adjustment in dividends aligns with projected earnings.
- Current dividend of $0.0325 represents a decrease from $0.04, indicating reduced earnings.
- Prolonged low interest rates and reinvestment risks are negatively impacting earnings.
CHICAGO, Sept. 20, 2021 /PRNewswire/ -- The Board of Directors of DTF Tax-Free Income Inc. (NYSE: DTF) (the "Fund"), a closed-end fund advised by Duff & Phelps Investment Management Co., today authorized the payment of dividends on the Fund's common stock as follows:
Cents Per Share | Ex-Dividend Date | Record Date | Payable Date |
3.25 | October 14, 2021 | October 15, 2021 | October 29, 2021 |
3.25 | November 12, 2021 | November 15, 2021 | November 30, 2021 |
3.25 | December 14, 2021 | December 15, 2021 | December 31, 2021 |
The
An extended environment of historically low interest rates has added a significant element of reinvestment risk to bond funds, including the Fund. When bonds held in a portfolio mature or are called for redemption during a period of low interest rates, the proceeds generally need to be reinvested in lower yielding securities. Due to the Fund's investment policies, which allow it to purchase only investment grade bonds, a prolonged period of relatively low interest rates and modest reinvestment opportunities has reduced the availability of earnings to the Fund. The decrease in the dividend is intended to better align the Fund's monthly distribution with its current and projected earnings and is subject to re-evaluation as the interest rate and credit environment changes.
About the Fund
DTF Tax-Free Income Inc. is a closed-end diversified investment management company whose investment objective is current income exempt from regular federal income tax consistent with preservation of capital. The Fund seeks to achieve its investment objective by investing in a diversified portfolio of investment-grade tax-exempt obligations. For more information, visit www.dpimc.com/dtf or call (800) 338-8214.
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 DTF Tax-Free Income Inc.
FAQ
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Why was the dividend decreased for DTF Tax-Free Income Inc.?
How does the current interest rate environment affect DTF Tax-Free Income Inc.?
