Decoding Duff & Phelps Utility and Infrastructure Fund's Distribution Insights

Understanding Duff & Phelps Utility and Infrastructure Fund's Monthly Distribution

In recent updates, Duff & Phelps Utility and Infrastructure Fund Inc. (NYSE: DPG), a closed-end investment fund, revealed essential information regarding its monthly distribution. This distribution is of particular importance to shareholders, offering insights into the fund's financial health and investment strategy.

Monthly Distribution Announcement

The Board of Directors for Duff & Phelps Utility and Infrastructure Fund has outlined a monthly distribution amounting to $0.07 per share. This declaration provides shareholders with a clear understanding of their return on investment amidst the ever-changing market conditions.

Adoption of the Managed Distribution Plan

The Fund has been operating under a Managed Distribution Plan since 2015. This strategic approach allows the Fund to distribute all available investment income to its shareholders. The focus remains on aligning distributions with the Fund’s investment objectives. In situations where investment income falls short, the Fund compensates by distributing realized capital gains or a return of capital, ensuring that the monthly distribution remains steady at $0.07 per share.

Financial Breakdown of Estimated Monthly Distributions

The estimated monthly distribution for December comprehensively outlines how the amounts are derived based on the Fund's investment performance. Each share will reflect the calculations derived from net investment income, realized gains, and any other applicable sources financing these distributions.

Detailed Distribution Estimate Table

As part of its commitment to transparency, the Fund released a table detailing the projected amounts for December's distribution to shareholders on record, alongside cumulative distribution data for the fiscal year. These figures are carefully calculated in a variety of categories, revealing how each source contributes to shareholder returns.

Performance Metrics and Returns

As of a recent review, the Fund reported an impressive average annual total return on its net asset value (NAV) over the past five years, clocking in at an impressive 8.24%. This figure demonstrates the Fund's consistent focus on delivering substantial returns to its investors. Investors have also seen a 6.02% annualized current distribution rate, indicating a strong commitment to maintaining returns.

Cumulative Returns and Future Forecast

For the fiscal year, cumulative returns have been marked at 9.65% on the NAV, highlighting the effectiveness of the Fund’s investment strategy. This insight into total distributions as a percentage of NAV builds confidence among shareholders about the overall financial health and future projections.

Tax Reporting and Distribution Notices

It is essential for shareholders to note that the amounts and sources reported for distributions are estimates and not definitive figures for tax reporting purposes. The Fund will provide accurate distributions on Form 1099-DIV, aiding shareholders in properly reporting these amounts.

About the Fund and Its Goals

Duff & Phelps Utility and Infrastructure Fund Inc. is committed to pursuing total return primarily via high current income and long-term capital appreciation. By focusing its investments predominantly on equity securities within domestic and international utilities and essential infrastructure, the Fund aims to provide steady income with prudent growth opportunities.

Strategic Investment Approach

The Fund allocates at least 80% of its assets towards dividend-paying equity securities, ensuring its investments remain robust and supportive of its mission. Sectors of interest include electric, gas, and water utilities, alongside crucial infrastructure like toll roads and airports.

About the Investment Adviser

Affiliated with Virtus Investment Partners, Inc. (NYSE: VRTS), Duff & Phelps Investment Management Co. specializes in listed real asset strategies. With a diversified portfolio approach and an assurance of quality and reliability, the firm has positioned itself as a significant player in asset management since 1932.

Frequently Asked Questions

What is the current monthly distribution rate for the Fund?

The Fund has set its monthly distribution at $0.07 per share.

What methodology does the Fund use for its distributions?

The Fund follows a Managed Distribution Plan, distributing all investment income to shareholders and making adjustments based on available income and realized gains.

How does the Fund's performance compare over the years?

With an average annual total return on NAV of 8.24% over five years, the Fund demonstrates its effectiveness in providing substantial returns to its investors.

When will the distributions be formally issued?

Distributions will be formally issued and communicated via a 19(a) notice at the time of each distribution.

Where should shareholders look for tax information related to distributions?

Accurate tax reporting will be provided on Form 1099-DIV, detailing how to report distributions for federal income tax purposes.

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