I have been thinking about buying into this fund.
Can anybody tell if this is a good fund? I would like
to get into the dividend reinvestment program also.
How long is this fund been around? I have tried to
get information about the fund from its web site but
www.duff.com doesn't bring anything up. Please help.
Most utilities borrow lots of money, so rising
interest rates cause a drop in stock price. However, where
can you get a stock that pays the same dividend
regardless of price, compounds once a month, and allows you
to dividend reinvest at a discount? If you know,
tell me. This isnt bought for a rise in share price,
but for the income. The price fluctuations go on most
of the time, but unless you are planning to sell, so
Natural gas prices rise with oil
DNP owns telecoms (Baby Bells) which are internet
Book value (net asset value) per share
Closed at $9.125 Friday.
Good buy with a yield of
I think so since it's under book value.
If the market corrects and there is a flight to
safety DNP will rise fast. But for the long term holder,
and retired person, this is a great income producer.
I like my checks every month.
But do your
own research. Check out Value Line at the library.
One complication (I don't think it will happen
though) with utilities providing internet service is if
the recent trend towards municipalities awarding
equal access for anybody means utilities will not "own"
the right of access to homes. I think this recent
trend will eventually be overturned by the U.S. Supreme
Also, check out CNDS for a utility
and quasi-internet play.
Also, you read it
here first--FED raises rates tommorrow (Oct. 5)
Look for the trend in hte future for smart
utilities to become internet providers. Like one in
Kentucky that now provides broadband services to it's
customers. This is the place to be for the next 5 years.
HEADLINE: The FED does not raise rates again.
Yield 8.1% which is 2% better than the 30 year bond!
In my opinion DNP is dropping like all high or
moderate yield closed end mutual fund with the
anticipation that interest rates are going to rise. I believe
they are over reacting and now is a good time to be
accumulating. In my case I am in the automatic reinvestment and
the drop doesn't bother me because i am getting more
stock for my dividends. I view this stock as a long
term safe stock and an excellent reinvestment stock.
It's dropping more than the utility spider index
(XLU), so I suspect something more is going on than just
a market correction.
Any ideas? Feel free to
e-mail me since this board is kinda dead itself.
They have diversified into natural gas and Baby
Bell stocks too. The yield is almost 8% whick is 2%
above the long 30 year bond yield.
book value of $9.83 right now. IMO it's a buy now.
I agree with you stockpicker that now is a good time to accumulate DNP but you also have to remember that in 95 DNP got down below the $8 price so we still may have some more room for correction.
Utilities and DNP will become the next .com play.
Internet service provided by your utility company. DNP
also owns baby bells too and there secondary internet
plays. Data can be transmitted thru the copper electric
wires. DNP yield approx 8% better than the 30 long bond.
Remember DNP was $11 1/2+?
I believe interest rates go up every 3 years and
we are in the third year. Longer term, I think we
are still in a long trend. Therefore, IMHO, DNP is a
BUY, when talk or rates increase such as now! Also
looks like premium may have diminished!