DNP Select Income Fund Soars 0.82% to April 2025 High

The share price of DNP Select Income (DNP) rose to its highest level since April 2025 today, with an intraday gain of 0.82%.

The strategy of buying DNP shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a maximum drawdown and steady, if modest, gains.

Maximum Drawdown: The maximum drawdown during this period was -15.8% in February 2023, which occurred after DNP shares reached a high in January 2023. This indicates that the strategy can withstand market downturns but with significant losses.

Annualized Returns: The annualized return for this strategy over the past 5 years was approximately 2.5%. While this is a modest return, it demonstrates the strategy's ability to generate consistent, if not impressive, gains.

Monthly Performance: The strategy showed steady monthly performance, with no significant months dragging down the overall return. This suggests that the strategy's risk management is effective, but the returns are capped by the nature of holding for a short duration.

Comparison with Market: The strategy's returns slightly underperformed the market, with the S&P 500 returning around 4.5% annually over the same period. This indicates that while the strategy is sound, it may not keep up with broader market trends.

In conclusion, the strategy of buying DNP shares after they reach a recent high and holding for 1 week is a conservative approach that prioritizes risk management. While it offers steady returns, it may not be the most aggressive strategy, as evidenced by its underperformance compared to the broader market.

On May 19, 2025, the Relative Strength Index (RSI) indicator for DNP Select Income Fund left the overbought zone. This movement in the RSI can signal potential changes in investor sentiment, which may influence the stock price of DNP Select Income Fund.