DNP Select Income: "Phenomenal" Total Return

Focus: FUNDS

Briton Ryle Image Briton Ryle Editor, The Wealth Advisory

DNP Select Income Fund (DNP) is a closed-end fund (CEF). That means it’s organized as a publicly traded investment company by the SEC. And, like a mutual fund or an ETF, it’s a pool of investments with a manager overseeing the portfolio, notes Briton Ryle, editor The Wealth Advisory.

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The main difference between a closed-end fund and an ETF is that the CEF issues a set number of shares and never creates more. The fund manager sees to the allocations and distributes dividend payments to shareholders on a regular schedule.

Like an ETF, shares can be traded on the open market. And they can grow or decline in value depending on the demand in the marketplace.

DNP was set up in 1987 with the goal of providing investors with current income and long-term income growth. And it’s done an excellent job of fulfilling those aspirations.

It’s traded within a very tight range of $8 to $12 since its inception. And it’s only dropped below $8 once in the past 30 years. That was during the Great Recession.

And even then, DNP didn’t fall nearly as fast nor as far as the rest of the market. And it kept paying investors a steady dividend each and every month.