UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number        811-4915

                          DNP Select Income Fund Inc.                          

(Exact name of registrant as specified in charter)

  200 South Wacker Drive, Suite 500, Chicago, Illinois              60606  

(Address of principal executive offices)                 (Zip code)

Alan M. Meder Lawrence R. Hamilton, Esq.
DNP Select Income Fund Inc. Mayer Brown LLP
200 South Wacker Drive, Suite 500 71 South Wacker Drive
Chicago, Illinois 60606 Chicago, Illinois  60606

(Name and address of agents for service)

Registrant’s telephone number, including area code:     (312) 368-5510

Date of fiscal year end:     October 31

Date of reporting period:    January 31, 2018

 

 

 

 

Item 1.Schedule of Investments.

 

See the Statement of Net Assets below.

 

 

DNP SELECT INCOME FUND INC.

STATEMENT OF NET ASSETS

JANUARY 31, 2018

(Unaudited)

 

Shares  Description   Value
       
COMMON STOCKS & MLP INTERESTS--119.3%
          
    ELECTRIC, GAS AND WATER--80.9%     
2,533,240   Alliant Energy Corp.(a)  $100,696,290 
1,688,000   Ameren Corp.(a)(b)   95,591,440 
900,000   American Electric Power Company, Inc.   61,902,000 
1,000,000   American Water Works Co.(a)   83,170,000 
732,000   Atmos Energy Corp.(a)   60,682,800 
3,071,300   CenterPoint Energy, Inc.(a)   86,549,234 
2,397,000   CMS Energy Corp.(a)(b)   107,265,750 
864,000   Dominion Energy, Inc.   66,044,160 
955,000   DTE Energy Co.(a)   100,886,200 
1,000,000   Edison International   62,530,000 
1,138,855   Emera Inc.   42,236,543 
1,719,400   Eversource Energy(a)(b)   108,476,946 
2,500,000   Great Plains Energy Inc.(a)(b)   77,800,000 
747,700   NextEra Energy, Inc.(a)(b)   118,450,634 
1,010,250   Nextera Energy Partners, LP   45,370,328 
2,270,000   NiSource Inc.   56,023,600 
800,000   Northwest Natural Gas Co.   45,880,000 
2,300,000   OGE Energy Corp.(a)   74,060,000 
500,000   ONE Gas, Inc.   35,415,000 
1,000,000   Pinnacle West Capital Corp.   79,950,000 
1,800,000   Public Service Enterprise Group Inc.(a)(b)   93,366,000 
900,000   Sempra Energy(a)(b)   96,318,000 
1,500,000   South Jersey Industries, Inc.   44,160,000 
2,000,000   Southern Co.(a)(b)   90,220,000 
778,000   Spire Inc.   51,737,000 
1,500,000   Vectren Corp.(a)   90,945,000 
1,500,000   WEC Energy Group, Inc.(a)   96,450,000 
910,000   The Williams Companies, Inc.   28,564,900 
2,000,000   Xcel Energy Inc.(a)   91,280,000 
        2,192,021,825 

 

The accompanying note is an integral part of this financial statement.

   
   

DNP SELECT INCOME FUND INC.

STATEMENT OF NET ASSETS — (Continued)

JANUARY 31, 2018

(Unaudited)

 

Shares  Description   Value
          
    OIL & GAS STORAGE, TRANSPORTATION AND PRODUCTION--24.2%     
364,729   Andeavor Logistics LP  $    18,856,489 
595,765   Antero Midstream GP LP   12,546,811 
435,000   Antero Midstream Partners LP   13,232,700 
501,000   DCP Midstream LP   20,716,350 
433,800   Dominion Midstream Partners LP   12,905,550 
1,360,000   Enbridge Inc. (Canada)   49,816,800 
880,032   Energy Transfer Equity LP   16,104,586 
1,327,367   Energy Transfer Partners LP   26,600,435 
880,000   EnLink Midstream Partners LP   15,382,400 
1,276,000   Enterprise Products Partners LP   35,243,120 
425,000   EQT GP Holdings, LP   11,785,250 
176,000   EQT Midstream Partners LP   13,092,640 
545,000   GasLog Partners LP (Marshall Islands)   12,916,500 
357,000   Genesis Energy LP   8,221,710 
2,380,526   Kinder Morgan, Inc.(a)   42,801,857 
295,090   Magellan Midstream Partners LP   21,066,475 
727,185   MPLX LP   27,051,282 
299,150   ONEOK, Inc.   17,607,969 
717,000   Pembina Pipeline Corp.   24,504,878 
323,419   Phillips 66 Partners LP   17,024,776 
572,000   Plains All American Pipeline, LP   11,994,840 
575,000   Rice Midstream Partners LP   11,960,000 
430,625   Shell Midstream Partners LP   12,328,794 
360,000   Spectra Energy Partners, LP   15,386,400 
510,000   Tallgrass Energy GP, LP   12,484,800 
415,000   Tallgrass Energy Partners LP   18,260,000 
500,120   Targa Resources Corp.   24,005,760 
1,450,000   TransCanada Corp. (Canada)(a)(b)   66,758,000 
267,440   Valero Energy Partners LP   12,002,707 
651,460   Westlake Chemical Partners LP   15,765,332 
362,000   Western Gas Partners LP   18,201,360 
500,000   Williams Partners LP   20,950,000 
        657,576,571 

 

The accompanying note is an integral part of this financial statement.

   
   

DNP SELECT INCOME FUND INC.

STATEMENT OF NET ASSETS — (Continued)

JANUARY 31, 2018

(Unaudited)

Shares  Description   Value
          
    TELECOMMUNICATIONS--14.2%     
1,983,000   AT&T Inc.(a)(b)  $    74,263,350 
951,515   BCE Inc. (Canada)(a)(b)   44,483,326 
800,000   CenturyLink Inc.   14,248,000 
690,400   Crown Castle International Corp.   77,856,408 
1,000,000   Orange SA (France)   18,119,440 
1,280,300   Telus Corp. (Canada)   48,327,581 
1,502,089   Verizon Communications Inc.(a)   81,217,952 
782,200   Vodafone Group Plc ADR (United Kingdom)   25,202,484 
        383,718,541 
    Total Common Stocks & MLP Interests (Cost $2,468,216,286)   3,233,316,937 
          
          
Par Value         
          
BONDS--16.1%         
          
    ELECTRIC, GAS AND WATER--7.6%     
$22,000,000   Arizona Public Service Co.     
    6 7/8%, 8/01/36(a)(b)   29,103,854 
10,450,000   Atmos Energy Corp.     
    8 1/2%, 3/15/19(a)(b)   11,125,686 
11,000,000   Cleveland Electric Illuminating Co.     
    8 7/8%, 11/15/18(a)(b)   11,566,090 
8,000,000   CMS Energy Corp.     
    5.05%, 3/15/22   8,587,351 
6,750,000   Commonwealth Edison Company     
    6.95%, 7/15/18(a)   6,896,860 
5,000,000   Connecticut Light & Power Co.     
    3.20%, 3/15/27   4,952,445 
15,305,000   Consolidated Edison Co. of New York     
    7 1/8%, 12/01/18(a)(b)   15,898,747 
9,354,000   Dominion Resources, Inc.     
    6.40%, 6/15/18(a)(b)   9,507,641 
10,000,000   DPL Capital Trust II     
    8 1/8%, 9/01/31   9,912,500 
6,400,000   DTE Electric Co.     
    3.65%, 3/15/24   6,632,340 
20,000,000   Entergy Texas Inc.     
    7 1/8%, 2/01/19(a)(b)   20,888,571 

 

The accompanying note is an integral part of this financial statement.

   
   

DNP SELECT INCOME FUND INC.

STATEMENT OF NET ASSETS — (Continued)

JANUARY 31, 2018

(Unaudited)

Par Value  Description   Value
             
$10,618,000   Indiana Michigan Power Co.        
    7.00%, 3/15/19(a)(b)    $    11,143,375  
5,000,000   Metropolitan Edison Co.        
    7.70%, 1/15/19(a)    5,242,321  
12,000,000   National Fuel Gas Co.        
    8 3/4%, 5/01/19(a)(b)    12,861,019  
3,350,000   Nevada Power Co.        
    7 1/8%, 3/15/19    3,526,818  
10,345,000   Oncor Electric Delivery Co. LLC        
    7.00%, 9/01/22(a)(b)    12,078,527  
14,000,000   Progress Energy Inc.        
    7.05%, 3/15/19(a)(b)    14,706,660  
6,528,000   Public Service New Mexico        
    7 1/2%, 8/01/18(a)    6,701,272  
5,000,000   Sempra Energy        
    6.15%, 6/15/18    5,076,831  
         206,408,908  
             
    OIL & GAS STORAGE, TRANSPORTATION AND PRODUCTION--4.5%        
6,488,000   Energy Transfer Partners        
    7.60%, 2/01/24    7,489,435  
8,850,000   Energy Transfer Partners        
    8 1/4%, 11/15/29    11,438,966  
5,000,000   Enterprise Products Operating LLC        
    6 1/2%, 1/31/19    5,203,252  
12,826,000   EQT Corp.        
    8 1/8%, 6/01/19(a)    13,708,063  
8,030,000   Kinder Morgan, Inc.        
    6.85%, 2/15/20    8,660,103  
14,445,000   Magellan Midstream Partners, LP        
    6.40%, 7/15/18(a)(b)    14,723,615  
11,000,000   ONEOK, Inc.        
    6.00%, 6/15/35    12,653,232  
9,000,000   ONEOK Partners, LP        
    8 5/8%, 3/01/19    9,560,031  
5,000,000   Plains All American Pipeline, LP        
    4.65%, 10/15/2025    5,195,619  
12,940,000   Spectra Energy Capital, LLC        
    6.20%, 4/15/18(a)(b)    13,046,335  
2,615,000   Spectra Energy Capital, LLC        
    6 3/4%, 7/15/18    2,665,050  
9,140,000   TransCanada PipeLines Ltd. (Canada)        
    7 1/8%, 1/15/19(a)(b)    9,549,849  
8,000,000   Williams Partners LP        
    3.60%, 3/15/22    8,131,104  
         122,024,654  

 

The accompanying note is an integral part of this financial statement.

   
   

DNP SELECT INCOME FUND INC.

STATEMENT OF NET ASSETS — (Continued)

JANUARY 31, 2018

(Unaudited)

 

Par Value  Description   Value
             
    TELECOMMUNICATIONS--3.6%        
$10,000,000   BellSouth Capital Funding Corp.        
    7 7/8%, 2/15/30(a)    $    12,556,164  
15,000,000   CenturyLink Inc.        
    6 7/8%, 1/15/28    13,950,000  
5,900,000   Comcast Corp.        
    7.05%, 3/15/33    8,014,725  
9,385,000   Crown Castle International Corp.        
    4.45%, 2/15/26    9,706,672  
15,000,000   Koninklijke KPN NV (Netherlands)        
    8 3/8%, 10/01/30(a)    20,137,213  
5,000,000   TCI Communications Inc.        
    7 1/8%, 2/15/28    6,444,123  
15,500,000   Verizon Global Funding Corp.        
    7 3/4%, 12/01/30    20,922,203  
5,000,000   Vodafone Group Plc (United Kingdom)        
    7 7/8%, 2/15/30    6,696,376  
         98,427,476  
     NON-UTILITY--0.4%        
8,000,000   Dayton Hudson Corp.        
    9 7/8%, 7/01/20(a)    9,257,831  
         9,257,831  
    Total Bonds (Cost $436,845,374)    436,118,869  
             
TOTAL INVESTMENTS--135.4% (Cost $2,905,061,660)   3,669,435,806  
Secured borrowings--(14.7)%   (400,000,000 )
Secured notes--(11.1)%   (300,000,000 )
Mandatory Redeemable Preferred Shares at liquidation value--(11.1)%   (300,000,000 )
Other assets less other liabilities--1.5%   41,509,812  
NET ASSETS APPLICABLE TO COMMON STOCK--100.0%   $2,710,945,618  

 

The accompanying note is an integral part of this financial statement.

 

   
   

DNP SELECT INCOME FUND INC.

STATEMENT OF NET ASSETS — (Continued)

JANUARY 31, 2018

(Unaudited)

 

(a) All or a portion of this security has been pledged as collateral for borrowings and made available for loan.

 

(b) All or a portion of this security has been loaned.

 

The percentage shown for each investment category is the total value of that category as a percentage of the net assets applicable to common stock of the Fund.

 

Note 1. Investment Valuation

 

The Fund's investments are carried at fair value which is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. The three-tier hierarchy of inputs established to classify fair value measurements for disclosure purposes is summarized in the three broad levels listed below.

 

Level 1 - quoted prices in active markets for identical securities

Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.)

Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining fair value of investments)

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. For more information about the Fund's policy regarding valuation of investments and other significant accounting policies, please refer to the Fund's most recent financial statements contained in its annual report. The following is a summary of the inputs used to value each of the Fund's investments at January 31, 2018:

 

    Level 1    Level 2
Common stocks & MLP interests  $3,233,316,937    - 
Bonds   -   $436,118,869 
     Total  $3,233,316,937   $436,118,869 

 

There were no Level 3 priced securities held and there were no transfers between Level 1 and Level 2 related to securities held at January 31, 2018.

 

Other information regarding the Fund is available on the Fund's website at www.dnpselectincome.com or the Securities and Exchange Commission's website at www.sec.gov.

 

 

 

   
   

Item 2. Controls and Procedures.

 

(a)The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) are effective, based on an evaluation of those controls and procedures made as of a date within 90 days of the filing date of this report as required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934.

 

(b)There has been no change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

 

Item 3. Exhibits.

 

Exhibit 99.CERT Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002

 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) DNP SELECT INCOME FUND INC.
   
By (Signature and Title) /s/ Nathan I. Partain                                             
  Nathan I. Partain
  President and Chief Executive Officer
  (Principal Executive Officer)
   
Date March 19, 2018

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)   /s/ Nathan I. Partain                                             
  Nathan I. Partain
  President and Chief Executive Officer
  (Principal Executive Officer)
   
Date March 19, 2018
   
By (Signature and Title)   /s/ Alan M. Meder                                                   
  Alan M. Meder
  Treasurer and Assistant Secretary
  (Principal Financial and Accounting Officer)
   
Date March 19, 2018