Quick Note: The Top 10 “High Income NOW” Tear Sheet has been updated for July (and it can be accessed below). There were a few minor updates. For example, we added to a big-yield municipal bond CEF (as an honorable mention) because of management’s announced efforts to reduce the price discount), and we added to a top BDC that recently sold off (as it presents an attractive buying opportunity after a price decline). Disciplined, goal-focused, long-term investing continues to be a winning strategy.
DNP Select Income Fund: 7.6% Yield, 23.2% Premium to NAV
The DNP Select Income Fund (DNP) is an income investor favorite, offering a steady monthly distribution (current yield: 7.6%) by investing in utility sector stocks and investment grade bonds (both known for safety and stability). However, the shares currently trade at a large 23.2% premium to the fund’s net asset value (“NAV”). In this report, we review the strategy, the leverage, the distribution, the distribution reinvestment plan and the performance. We conclude with our opinion on whether this fund is worth considering for investment, or not.