DNP Select Income Fund Eyes Monthly Distribution; Analysts Note Historical 'Dividend Run' Patterns

DNP Select Income Fund (NYSE: DNP) is preparing for its next monthly dividend payment, triggering analysis into the fund's historical price behavior preceding ex-dividend dates. This phenomenon, often referred to as a 'dividend run,' occurs when investors buy into a stock in anticipation of a cash payout, creating upward price pressure. The upcoming distribution is set at $0.065 per share, with an ex-dividend date of April 30, 2026, and a payment date of May 11, 2026. Because a stock's price typically drops by the dividend amount on the ex-dividend date, some traders attempt to capture capital gains by entering positions several days or weeks in advance. Historical data for DNP supports this strategy. In February 2026, for example, the fund's shares closed at $10.25 on February 11 and rose to $10.56 by February 26, just before the ex-dividend date. This resulted in a capital gain of $0.31, which significantly exceeded the $0.065 dividend amount itself. Analysis of the last four dividend cycles indicates that this short-term run-up strategy yielded capital gains exceeding the dividend amount in three out of four instances. While past performance is not a guarantee of future results, the pattern suggests a potential window for short-term traders to maximize returns before the April 30 cutoff.