DNP Fund: AI Data Centers Fuel Undervalued Dividend Play

DNP Select Income Fund has been upgraded to a strong buy, trading near its deepest discount to NAV in five years. The fund offers a 7.4% monthly dividend yield with a stable distribution history and no dividend cut risk. DNP's utility holdings are positioned to benefit from surging AI data center demand, creating a powerful earnings catalyst. While moderate leverage and interest rate sensitivity pose risks, lower rates and AI-driven demand could significantly amplify returns.