Duff & Phelps Utility and Infrastructure Fund Inc. Announces Dividend and Discloses Sources of Distribution Section 19(a) Notice
June 15 2023 - 4:15PM
Business Wire
The Board of Directors of Duff & Phelps Utility and
Infrastructure Fund Inc. (NYSE: DPG), a closed-end fund advised by
Duff & Phelps Investment Management Co., today authorized the
payment of dividends on its common stock as follows:
Cents Per Share
Ex-Date
Record Date
Payable Date
21.0
September 14, 2023
September 15, 2023
September 29, 2023
At its June meeting, the Board of Directors voted to maintain
the Fund’s Managed Distribution Plan, but to decrease the quarterly
distribution rate from its previous level of $0.35 per share to a
new level of $0.21 per share. This represents a decrease in the
annual distribution level from $1.40 per share to $0.84 per share.
The 40% decrease in the distribution reflects the increase in the
Fund’s cost of leverage, current and expected earnings, and overall
market conditions. The Fund’s investment adviser and Board of
Directors believe that the new distribution level should be more
sustainable over time and thus that the new level is in the
long-term interest of shareholders.
The new $0.84 per share annual distribution rate represents a
yield of 6.74% based on the market price of the Fund’s shares of
$12.47 as of the close of the New York Stock Exchange on Wednesday,
June 14, 2023 and approximately 7.62% based on the Fund’s net asset
value (NAV) of $11.03 as of the same date.
The Fund adopted a Managed Distribution Plan (the “Plan”) in
2015. Under the Plan, the Fund will distribute all available
investment income to its shareholders, consistent with the Fund’s
investment objective. If and when sufficient investment income is
not available on a quarterly basis, the Fund will distribute
realized capital gains and/or return of capital to its shareholders
in order to maintain the 21 cents per share distribution level.
The following table sets forth the estimated amounts of the
Fund’s June quarterly distribution to shareholders of record at the
close of business on June 15, 2023 (ex-date June 14, 2023), payable
June 30, 2023, together with the cumulative distributions paid this
fiscal year to date from the following sources. All amounts are
expressed per share of common stock based on U.S. generally
accepted accounting principles which may differ from federal income
tax regulations.
Distribution Estimates
June 2023 (QTD)
Year-to-date (YTD)
(Sources)
Per Share
Amount
% of
Current
Distribution
Per Share
Amount
% of
Cumulative
Distributions
Net Investment Income
$
0.000
0.0
%
$
0.000
0.0
%
Net Realized Foreign Currency Gains
0.000
0.0
%
0.001
0.1
%
Net Realized Short-Term Capital Gains
0.000
0.0
%
0.000
0.0
%
Net Realized Long-Term Capital Gains
0.000
0.0
%
0.000
0.0
%
Return of Capital (or other Capital
Source)
0.350
100.0
%
1.049
99.9
%
Total
$
0.350
100.0
%
$
1.050
100.0
%
As of May 31, 2023
Average annual total return on NAV for the
5 years
2.18
%
Annualized current distribution rate as a
percentage of NAV
12.73
%
Cumulative total return on NAV for the
fiscal year
-4.53
%
Cumulative fiscal year distributions as a
percentage of NAV
9.55
%
The Fund will issue a separate 19(a) notice at the time of each
quarterly distribution using the most current financial information
available. You should not draw any conclusions about the Fund’s
investment performance from the amount of these distributions or
from the terms of the Fund’s managed distribution plan.
The Fund estimates that it has distributed more than its income
and capital gains; 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’.
The amounts and sources of distributions reported in this 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 the fiscal year and may be
subject to changes based on tax regulations. The Fund or your
broker 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.
About the Fund
Duff & Phelps Utility and Infrastructure Fund Inc. is a
closed-end investment management company whose investment objective
is to seek total return, resulting primarily from (i) a high level
of current income, with an emphasis on providing tax-advantaged
dividend income and (ii) growth in current income, and secondarily
from capital appreciation. The Fund seeks to achieve these
objectives by investing primarily in equities of domestic and
foreign utilities and infrastructure providers. Under normal market
conditions, the Fund will invest at least 80% of its total assets
in dividend-paying equity securities of companies in the utility
industry and the infrastructure industry. The utility industry is
defined to include the following sectors: electric, gas, water,
telecommunications, and midstream energy. The infrastructure
industry is defined as companies owning or operating essential
transportation assets, such as toll roads, bridges, tunnels,
airports, seaports, and railroads. For more information, please
contact shareholder services at (866) 270-7598, by email at
duff@virtus.com, or visit the DPG website, www.dpimc.com/dpg.
About the Investment Adviser
Duff & Phelps Investment Management Co. is a subsidiary of
Virtus Investment Partners (NASDAQ: VRTS), a distinctive
partnership of boutique asset managers. Duff & Phelps has more
than 35 years of experience managing investment portfolios,
including institutional separate accounts and open- and closed-end
funds investing in utilities, infrastructure, MLPs and real estate
investment trusts (REITs). For more information, visit
www.dpimc.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20230615803866/en/
For Further Information: DPG
Fund Services (866) 270-7598 duff@virtus.com
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