DNP: The Most Steady Monthly Payer, 7.47% Yield

Seeking AlphaClosed End FundsDNP: The Most Steady Monthly Payer, 7.47% YieldDec. 23, 2020 11:47 AM ET|| About: DNP Select Income Fund (DNP), Includes: CCI, DUC, NEE, UTF, UTG, XEL, XLUby: Nick AckermanNick Ackerman CEF/ETF Income LaboratoryCEF/ETF income and arbitrage strategies, 8%+ portfolio yieldsSummaryThe valuation of DNP has come down, but it's still not looking like the greatest value.
An investor still interested in DNP might consider DUC and the potential merger that has been announced.
For distribution consistency and stability, you can't beat this fund's track record.
Written by Nick Ackerman, co-produced by Stanford Chemist
In a recent screening for funds with the lowest 1-year z-score, I came across DNP Select Income Fund (DNP). What is interesting about DNP is that for most investors familiar with closed-end funds, it continually comes to the top of the list for the fund with the largest premium. The real draw for most investors here is that DNP is one of the most steady monthly payers we have in the CEF space. Instead of most funds that perpetually trade at discounts - this fund perpetually trades at premiums.

(Source - CEFConnect)
In the last couple of days, this has come down significantly to a z-score of -0.31. This happened primarily as NAV declined and the share price has stayed relatively flat.
The fund is really simple too when you break it down, they are basically your typical utility-focused fund. From their website, "is a diversified, closed-end management investment company that first offered its common stock to the public in January 1987. The Fund's primary investment objectives are current income and long-term growth of income. Capital appreciation is a secondary objective."
They attempt to achieve this "by investing primarily in a diversified portfolio of equity and fixed income securities of companies in the public utilities industry. The Fund's investment strategies have been developed to take... Read more