DPG: My Top Infrastructure Pick
Duff & Phelps Utility and Infrastructure Fund is my top infrastructure CEF pick, trading at a deep discount to peers and delivering performance. DPG offers a ~7% yield with a stable, recently increased monthly distribution and a cushion against potential payout cuts, supported by strong underlying returns expected. Despite higher leverage costs with likely rate headwinds, DPG's diversified utility and infrastructure portfolio remains well-positioned for long-term demand.
DPG's Discount-To-NAV: Causes And Catalysts
Duff & Phelps Utility and Infrastructure Fund currently trades at a 10.24% discount to NAV, primarily due to recent distribution cuts. DPG's leverage and expense ratios are in line with peers, and its long-term NAV performance is comparable or superior to UTF and UTG. Key catalysts for narrowing the discount include a recent distribution increase, a 5% share repurchase program, and strong total return prospects.
