PHILADELPHIA–(BUSINESS WIRE)–On April 26, 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 $0.0905 per share to shareholders of record at
the close of business on April 18, 2019.
The following table sets forth the estimated amount of the sources of
distribution for purposes of Section 19 of the Investment Company Act of
1940, as amended, and the related rules adopted thereunder. The Fund
estimates the following percentages, of the total distribution amount
per share, attributable to (i) net investment income, (ii) net realized
short-term capital gain, (iii) net realized long-term capital gain and
(iv) return of capital or other capital source. These percentages are
disclosed for the current distribution as well as the fiscal
year-to-date cumulative distribution amount per share for the Fund.
| Current Distribution from: | ||||||
|
Per Share ($) |
% |
|||||
| Net Investment Income | 0.0245 | 27.1% | ||||
| Net Realized Short-Term Capital Gain | 0.0000 | 0.0% | ||||
| Net Realized Long-Term Capital Gain | 0.0660 | 72.9% | ||||
| Return of Capital or other Capital Source |
0.0000 |
0.0% |
||||
| Total (per common share) | 0.0905 | 100.00% | ||||
| Fiscal Year-to-Date Cumulative | ||||||
| Distributions from: | ||||||
|
Per Share ($) |
% |
|||||
| Net Investment Income | 0.1090 | 24.0% | ||||
| Net Realized Short-Term Capital Gain | 0.0858 | 18.9% | ||||
| Net Realized Long-Term Capital Gain | 0.1886 | 41.5% | ||||
| Return of Capital or other Capital Source |
0.0708 |
15.6% |
||||
| Total (per common share) | 0.4542 | 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 3/29/2019) | |||||
| Annualized Distribution Rate as a Percentage of NAV^ | 9.77% | ||||
| Cumulative Distribution Rate on NAV^^ | 4.09% | ||||
| Cumulative Total Return on NAV* | 3.20% | ||||
|
Average Annual Total Return on NAV for the 5 Year Period Ending 3/29/19** |
8.10% | ||||
| ^ Based on the Fund’s NAV as of March 29, 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 March 29, 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 March 29, 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.
© 2019 Macquarie Management Holdings, Inc.
Contacts
Investors
Computershare
866 437-0252
delawarefunds.com/closed-end
Media contacts
Daniela Palmieri
215 255-8878
Jessica Fitzgerald
215 255-1336
