ET - DPG: Attractive Discount On Infrastructure Exposure
2024-02-17 06:23:17 ET
Summary
- Duff & Phelps Utility and Infrastructure Fund is currently trading at an attractive discount, presenting a potential opportunity for investors.
- Lower interest rates could benefit DPG and the utility sector as a whole, potentially leading to a much better performance going forward.
- The fund's distribution remains more sustainable and quite reasonable after the distribution cut last year.
Written by Nick Ackerman, co-produced by Stanford Chemist.
The last time we touched on Duff & Phelps Utility and Infrastructure Fund ( DPG ), I flipped to a 'Buy' rating based on the large discount. The 'dust' was beginning to settle, and coincidentally, at that time, the market overall was near correction. It ultimately recovered after briefly touching correction territory, and DPG moved meaningfully higher as well. The discount narrowed only marginally, so most of these total returns during this period were driven by the underlying performance of the portfolio.
DPG Performance Since Prior Update (Seeking Alpha)