DNP Stock Recent News

We had rated DNP a Strong Sell, as the fund had a toxic combination of leverage and premium to NAV. DNP has dropped sharply and thesis has been validated. We compare this with another fund, BUI, and tell you why we prefer the latter.

DNP Select Income Fund offers a high level of income with an 8.57% current yield, higher than the S&P 500 Index. The fund's recent performance has been disappointing, with an 18.89% decline in share price compared to a 10.50% gain in the S&P 500 Index. The fund's leverage and allocation to utilities have hindered its performance, and it may struggle to sustain its distribution in the near term.

DNP Select Income Fund is a closed-end fund that focuses on current income and has maintained a large distribution. The fund primarily invests in utilities and midstream assets, with some exposure to the communication sector. DNP has underperformed its benchmarks in recent years and faces potential challenges due to the state of the utilities industry and its leverage costs.

We share updated data on more than 10 of the biggest and most-popular big-yield CEFs, many of them paying distributions monthly. After reviewing seven important questions to ask before investing in any CEF, we consider current market conditions and macroeconomic risk factors. We have a special focus on the DNP Select Income Fund, which is known for safety and stability (thanks to its utility sector and investment-grade bond allocations).

DNP Select Income and Reaves Utility Income are both solid long-term choices in the utility/infrastructure closed-end fund space. UTG gets the edge over DNP due to its valuation, as the discount/premium can play a significant role in the outcome for investors. Buying DNP at a premium of below 10% is generally a good buying opportunity, but even more ideally, it would be at a discount which doesn't come around often.

DNP: Moving From Sell To Hold On This CEF.

Closed-End Funds, or CEFs, are a popular form of monthly paying stocks. Most, however, are dangerous and lack income dependability, due to destructive use of Return of Capital (unsustainable dividends that fall over time).

DNP and UTG are exceptionally popular CEFs for income investors. We had suggested a switch the last time around when we covered these two and we take a look at how the trade has played out.

DNP is a utilities equities closed end fund with a substantial track record. The fund is one of those rare, golden standard CEFs that have always traded at premiums to NAV in the past decade.

DNP Select Income Fund invests in a diversified portfolio of utilities and other stable companies to provide investors with a high level of current income. The fund does very limited trading over time, which helps it keep costs down and beat its benchmark index.