- Utilities tend to be solid investments for retirees because of their stable cash flows and high yields.
- DNP offers a substantially better yield than indexed utility funds at 7.50%.
- There is some excitement around electric utilities right now, but this appears to be unjustified as demand will not grow like some predict.
- The fund appears easily able to cover its distributions, which should be comforting to potential investors.
- The fund's premium is not as high as usual, but it still puts a great deal of faith in management and does not represent a bargain.
For further details see:
DNP: The 7.50% Yield Is Nice But The Fund Looks Overpriced