Let thy step be slow and steady, that thou stumble not. – Tokugawa Ieyasu
Ever since its inception in January 1987, DNP Select Income Fund (DNP) has been paying dividends consistently. Its distribution reliability and operational durability are factors that have earned it the reputation of a trustworthy fund for income seekers. This is the reason why its market price trades at a premium to its NAV. For the record, its NAV is $8.47 whereas its market price is $10.09 as of October 5, 2020.
Is the price premium justified? Is DNP a buy for income seekers today? Here’s my take:
Investment Strategy & Portfolio
DNP’s goal is to provide investors with current income and long-term income growth by investing mainly in equity and fixed income securities of companies in the public utilities sector. Capital appreciation is a secondary objective.
As of April 29, 2020, DNP’s balance sheet