PHILADELPHIA, Nov. 13 /PRNewswire-FirstCall/ -- Today, Delaware Investments Dividend and Income Fund, Inc. (the "Fund"), a New York Stock Exchange-listed closed-end fund trading under the symbol "DDF," declares a special dividend of 91 cents per share. This dividend is payable November 30, 2007 to shareholders of record at the close of business on November 23, 2007. The ex-dividend date is November 20, 2007. This special dividend is in addition to the Fund's regular monthly dividend of 8 cents per share, which was declared earlier this month.
The Fund is paying this special dividend in order to comply with certain federal tax and securities law requirements. Of the Fund's total special dividend, it is estimated that 4.1 cents represents net investment income, 59.5 cents represents a long-term capital gains distribution, and 27.4 cents represents a return of capital. The information in the preceding sentence is an estimate and is provided only for informational purposes. The Fund will continue to process securities transactions within the Fund's portfolio that may generate additional income, gains, or losses that may significantly change the estimates above. The actual determination of the source of the Fund's dividends can be made only at year-end. Shareholders should receive written notification of the actual components and tax treatment of all Fund dividends for the calendar year 2007 in early 2008. Because each shareholder's tax status is unique, shareholders should consult their tax advisor regarding the appropriate treatment of Fund distributions.
The Fund is a diversified closed-end fund. The primary investment objective is to seek high current income; capital appreciation is a secondary objective. The Fund seeks to achieve its objectives by investing, under normal circumstances, at least 65 percent of its total assets in income-generating equity securities, including dividend-paying common stocks, convertible securities, preferred stocks and other equity-related securities. Up to 35 percent of the Fund's total assets may be invested in non-convertible debt securities consisting primarily of high-yield, high-risk corporate bonds. In addition, the Fund utilizes leveraging techniques in an attempt to obtain a higher return for the Fund. There is no assurance that the Fund will achieve its investment objectives.
In 1995, the Fund implemented a managed distribution policy. Under the policy, the Fund is managed with a goal of generating as much of the dividend as possible from ordinary income (net investment income and short-term capital gains). The balance of the dividend then comes from long-term capital gains to the extent permitted and, if necessary, a return of capital.
About Delaware Investments:
Delaware Investments, an affiliate of Lincoln Financial Group, is a Philadelphia-based diversified asset management firm with more than $167 billion in assets under management as of September 30, 2007. Through a broad range of managed accounts and portfolios, mutual funds, retirement accounts, sub-advised funds and other investment products, Delaware Investments provides investment services to individual investors and to institutional investors such as private and public pension funds, foundations, and endowment funds. Delaware Investments is the marketing name for Delaware Management Holdings, Inc. and its subsidiaries. For more information on Delaware Investments, visit the company at http://www.delawareinvestments.com/. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. For more information on Lincoln Financial Group, visit http://www.lincolnfinancial.com/.
