On September 27, 2019, Delaware Investments Dividend and Income
Fund, Inc. (NYSE: DDF) (the “Fund”), a closed-end fund, paid a
monthly distribution on its common stock of $0.0903 per share to
shareholders of record at the close of business on September 20,
2019.
The following table sets forth the estimated amount of the
sources of distribution for purposes of Section 19 of the
Investment Company Act of 1940, as amended, and the related rules
adopted thereunder. The Fund estimates the following percentages,
of the total distribution amount per share, attributable to (i) net
investment income, (ii) net realized short-term capital gain, (iii)
net realized long-term capital gain and (iv) return of capital or
other capital source. These percentages are disclosed for the
current distribution as well as the fiscal year-to-date cumulative
distribution amount per share for the Fund.
Current Distribution from:
Per Share
($)
%
Net Investment Income
0.0449
49.7%
Net Realized Short-Term Capital Gain
0.0000
0.0%
Net Realized Long-Term Capital Gain
0.0454
50.3%
Return of Capital or other Capital
Source
0.0000
0.0%
Total (per common share)
0.0903
100.00%
Fiscal Year-to-Date Cumulative
Distributions from:
Per Share
($)
%
Net Investment Income
0.2250
24.7%
Net Realized Short-Term Capital Gain
0.0000
0.0%
Net Realized Long-Term Capital Gain
0.6149
67.5%
Return of Capital or other Capital
Source
0.0708
7.8%
Total (per common share)
0.9107
100.00%
Shareholders should not draw any conclusions about the Fund’s
investment performance from the amount of this distribution or from
the terms of the Fund’s managed distribution policy. The amounts
and sources of distributions reported in this 19(a) Notice are only
estimates and are not being provided for tax reporting purposes.
The actual amounts and sources of the amounts for tax reporting
purposes will depend upon the Fund’s investment experience during
the remainder of its fiscal year and may be subject to changes
based on tax regulations. The Fund will send you a Form 1099-DIV
for the calendar year that will tell you how to report these
distributions for federal income tax purposes.
Subject to the foregoing, the Fund estimates (as of the date
hereof) that it has distributed more than its income and net
realized capital gains for the fiscal year ending November 30,
2019; therefore, a portion of your distribution may be a return of
capital. A return of capital may occur for example, when some or
all of the money that you invested in the Fund is paid back to you.
A return of capital distribution does not necessarily reflect the
Fund’s investment performance and should not be confused with
‘yield’ or ‘income.’
Presented below are return figures, based on the change in the
Fund’s Net Asset Value per share (“NAV”), compared to the
annualized distribution rate for this current distribution as a
percentage of the NAV on the last business day of the month prior
to distribution record date.
Fund Performance & Distribution Information
Fiscal Year to Date (12/01/2018 through
8/30/2019)
Annualized Distribution Rate as a
Percentage of NAV^
10.14%
Cumulative Distribution Rate on NAV^^
8.52%
Cumulative Total Return on NAV*
2.62%
Average Annual Total Return on NAV for the
5 Year Period Ending 8/30/19**
6.24%
^ Based on the Fund’s NAV as of August 30, 2019.
^^ Cumulative distribution rate is the cumulative amount of
distributions paid during the Fund’s fiscal year ending November
30, 2019 based on the Fund’s NAV as of August 30, 2019.
*Cumulative fiscal year-to-date return is based on the change in
NAV including distributions paid and assuming reinvestment of these
distributions for the period December 1, 2018 through August 30,
2019.
**The 5 year average annual total return is based on change in
NAV including distributions paid and assuming reinvestment of these
distributions and is through the last business day of the month
prior to the month of the current distribution record date.
While the NAV performance may be indicative of the Fund’s
investment performance, it does not measure the value of a
shareholder’s investment in the Fund. The value of a shareholder’s
investment in the Fund is determined by the Fund’s market price,
which is based on the supply and demand for the Fund’s shares in
the open market.
About DDF
The Fund’s primary investment objective is to seek high current
income; capital appreciation is a secondary objective. The Fund
seeks to achieve its objectives by investing, under normal
circumstances, at least 65% of its total assets in
income-generating equity securities, including dividend-paying
common stocks, convertible securities, preferred stocks, and other
equity-related securities, which may include up to 25% in real
estate investment trusts (REITs) and real estate industry operating
companies. Up to 35% of the Fund's total assets may be invested in
nonconvertible debt securities consisting primarily of high-yield,
high-risk corporate bonds. In addition, the Fund utilizes
leveraging techniques in an attempt to obtain a higher return for
the Fund. There is no assurance that the Fund will achieve its
investment objectives.
The Fund has implemented a managed distribution policy. Under
the policy, the Fund is managed with a goal of generating as much
of the distribution as possible from net investment income and
short-term capital gains. The balance of the distribution will then
come from long-term capital gains to the extent permitted, and if
necessary, a return of capital. Even though the Fund may realize
current year capital gains, such gains may be offset, in whole or
in part, by the Fund’s capital loss carryovers from prior
years.
Currently under the Fund’s managed distribution policy, the Fund
makes monthly distributions to common shareholders at a targeted
annual distribution rate of 10% of the Fund’s average net asset
value (“NAV”) per share. The Fund will calculate the average NAV
per share from the previous three full months immediately prior to
the distribution based on the number of business days in those
three months on which the NAV is calculated. The distribution will
be calculated as 10% of the prior three month’s average NAV per
share, divided by 12. The Fund will generally distribute amounts
necessary to satisfy the Fund’s managed distribution policy and the
requirements prescribed by excise tax rules and Subchapter M of the
Internal Revenue Code. This distribution methodology is intended to
provide shareholders with a consistent, but not guaranteed, income
stream and a targeted annual distribution rate and is intended to
narrow the discount between the market price and the NAV of the
Fund’s common shares, but there is no assurance that the policy
will be successful in doing so. The methodology for determining
monthly distributions under the Fund’s managed distribution policy
will be reviewed at least annually by the Fund’s Board of
Directors, and the Fund will continue to evaluate its distribution
in light of ongoing market conditions.
The payment of dividend distributions in accordance with the
managed distribution policy may result in a decrease in the Fund’s
net assets. A decrease in the Fund’s net assets may cause an
increase in the Fund’s annual operating expenses and a decrease in
the Fund’s market price per share to the extent the market price
correlates closely to the Fund’s net asset value per share. The
managed distribution policy may also negatively affect the Fund’s
investment activities to the extent that the Fund is required to
hold larger cash positions than it typically would hold or to the
extent that the Fund must liquidate securities that it would not
have sold, for the purpose of paying the dividend distribution. The
managed distribution policy may, under certain circumstances, cause
the amounts of taxable distributions to exceed the amount minimally
required to be distributed under the tax rules, such excess will be
taxable as ordinary income to the extent loss carry forwards reduce
the required amount of capital gains distributions in that year.
Investors should consult their tax advisor regarding federal,
state, and local tax considerations that may be applicable in their
particular circumstances.
About Macquarie Investment Management
Macquarie Investment Management, a member of Macquarie Group,
includes the former Delaware Investments and is a global asset
manager with offices throughout the United States, Europe, Asia,
and Australia. As active managers, we prioritize autonomy and
accountability at the team level in pursuit of opportunities that
matter for clients. Macquarie Investment Management is supported by
the resources of Macquarie Group (ASX: MQG; ADR: MQBKY), a global
provider of asset management, investment, banking, financial and
advisory services.
Advisory services are provided by Macquarie Investment
Management Business Trust, a registered investment advisor.
Macquarie Group refers to Macquarie Group Limited and its
subsidiaries and affiliates worldwide. For more information about
Delaware Funds® by Macquarie, visit delawarefunds.com or call 800
523-1918.
Other than Macquarie Bank Limited (MBL), none of the entities
referred to in this document are authorized deposit-taking
institutions for the purposes of the Banking Act 1959 (Commonwealth
of Australia). The obligations of these entities do not represent
deposits or other liabilities of MBL, a subsidiary of Macquarie
Group Limited and an affiliate of Macquarie Investment Management.
MBL does not guarantee or otherwise provide assurance in respect of
the obligations of these entities, unless noted otherwise.
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Investors Computershare 866 437-0252
delawarefunds.com/closed-end
Media contacts Daniela Palmieri 215 255-8878
Jessica Fitzgerald 215 255-1336
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