What would you do? just hold on or just take the loss. This was a great fund my friend told me for long term income and from past performances. This CEF is for my dad's income..What to do? Glad I got him into Hatteras financial to offset the loses from DNP. Also why would DNP go down today when Utilities were up...Dave, inexperienced investor...thanks Being a Met's fan doesn't help either..
I can't tell you what to do, and neither can anyone who doesn't know your situation. All I can tell you is I have been in DNP for more than 15 years. When it went down under $ 6.00 I doubled down on my investment. I have been averaging over 7% per year in dividends based on my average price per share. Will I sell any? Don't know. I'll wait a while longer and see.
Some good advice on this board. I too bought when it dipped below 6. Lowered my cost per share. I have held this fund since 1989. Never lowered or missed a monthly distribution. I think there was a rights offering in the early 90's. Although it dilutes the shares, we were able to buy new shares at a discount.
Check the daily chart for the 200-day MA position at $10.20.
The weekly chart is showing an oversold condition...
In August 2011 the daily chart dipped below the 200-day MA and there was a massive volume spike into the sell-off, driving the price down from 9 to 8.10 in one or two days. Then it popped right back up. I would buy this expected sell-off bottom and place a tight sell stop under it in case it decides to take a nose dive after that.
The solution . . . may depend on your objectives and attitude toward risk.
Until recently DNP was selling at a significant premium compared to its invested worth (NAV.) Secondly, DNP announced a "Rights Offering," an unprecedented event for DNP with an unknown outcome.
My guess is that the price of the stock will continue to decline reducing or eliminating the premium, and the dividends will continue to be paid.
Over all the stock will be less market attractive.
Then, we have the Pres and the Congress talking about increasing the tax on dividends and capital gains. The CG tax moving from 15 percent to 43 percent including Obamacare.
If I knew anything I'd have sold 3 months ago.
Dave, hard to say why it is down...maybe quarter end window-dressing for certain investors or maybe skittishness re: the recent offering. But FWIW, the divi is still ok and if you bought for income..well, you still get it. I have had this stock for many years. I sold half my position a few weeks ago, but am buying it back now.
The Mets, of cousre, present a much more confusing problem!
I was recently turned on to DNP by my father-in-law. I bought 600 shares to test the recent bounce, which obviously failed. So I sold all of it immediately. I am looking for a re-entry, and it looks like DNP is heading slightly lower from here since it appears to have broken support on the daily chart.
However, the weekly chart shows there's a very strong probability DNP will bounce off the 200-day moving average. So expect a rebound off of $10.06 -- see the chart at http://stockcharts.com/h-sc/ui?s=DNP&p=W&b=5&g=0&id=p38218342330
If DNP dips below $10, I would wait and see if it comes back above $10.06 and if it stays that way and continues up for another day or two, I will buy back in and re-start the accumulation process.
I am also looking at CLM which has a 17% annual yield and pays monthly. I am waiting for it to take a nice big dip before I get in, though. I may just park some shares with a tight sell stop under them, though.