UMI - DPG Has Some OK Exposures But Modest Premium Isn't Worth It

• DPG is exposed in some nice ways to the current commodity environment.
• However, it trades at a moderate premium to NAV, and it has many exposures that it could well do without.
• We don't see the value in investing in their mostly utilities-focused diversified portfolio when selectivity in utilities is so important right now.
• But they do offer a high yield, so for an income investor the tacit assurance of payout might make it worth it, but otherwise we'd look elsewhere.
• Despite their leverage, they haven't beaten the market, and they shouldn't do so in the near future.

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