| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 535.02 | 3887 |
| Intrinsic value (DCF) | 4.33 | -68 |
| Graham-Dodd Method | 19.03 | 42 |
| Graham Formula | n/a |
Duff & Phelps Utility and Infrastructure Fund Inc. (NYSE: DPG) is a closed-end equity mutual fund managed by Duff & Phelps Investment Management Co., a subsidiary of Virtus Investment Partners. Launched in 2011, the fund primarily invests in global utility and infrastructure companies, focusing on income generation through dividend-paying stocks. DPG targets diversified market capitalizations within the utility sector, including electric, gas, water, and renewable energy providers, as well as infrastructure-related firms. As part of the financial services sector, the fund appeals to income-focused investors seeking exposure to stable, regulated utilities and essential infrastructure assets. With a market cap of approximately $456 million, DPG offers a dividend yield supported by its portfolio of defensive, low-beta utility stocks. The fund’s strategy capitalizes on the long-term demand for essential services and infrastructure investment, positioning it as a niche player in the asset management industry.
DPG presents an attractive option for income-seeking investors, given its focus on utility and infrastructure stocks, which typically offer stable dividends and lower volatility (beta of 0.75). The fund’s net income of $142.4 million and diluted EPS of $3.73 reflect strong profitability, while its $0.84 dividend per share underscores its income-generating capability. However, as a closed-end fund, DPG trades at a premium or discount to NAV, introducing pricing risk. The lack of leverage (zero total debt) is a positive, but the fund’s performance is heavily tied to interest rate sensitivity and regulatory changes in the utility sector. Investors should weigh its defensive positioning against potential limited growth upside compared to broader equity funds.
DPG’s competitive advantage lies in its specialized focus on utility and infrastructure equities, a niche that offers lower correlation to broader markets and steady income. Unlike open-end mutual funds or ETFs, its closed-end structure allows for fixed capital deployment without redemption pressures, though it can trade at premiums/discounts. The fund’s management by Duff & Phelps, a seasoned investment firm, adds credibility, but its performance is constrained by sector-specific risks like regulatory scrutiny and capital-intensive business models. Compared to peers, DPG’s concentrated utility exposure may limit diversification benefits, though it provides a hedge against economic downturns. Its zero-debt stance differentiates it from leveraged closed-end funds but may also cap returns in low-rate environments. Competitors with broader mandates or active sector rotation could outperform in growth cycles, but DPG’s defensive tilt appeals to risk-averse investors.