Delaware Dividend Income Fund


Delaware Dividend Income Fund seeks to provide high current income and an investment that has the potential for capital appreciation.


The Fund invests primarily in income generating securities (debt and equity), which may include equity securities of large, well-established companies, and debt securities, including high yield, high-risk corporate bonds, investment grade fixed income securities, and U.S. government securities.

Fund information
Inception date12/02/1996
Dividends paid (if any)Monthly
Capital gains paid (if any)December
Fund identifiers

Institutional Class shares are only available to certain investors. See the prospectus for more information. 

The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted.

Total returns may reflect waivers and/or expense reimbursements by the manager and/or distributor for some or all of the periods shown. Performance would have been lower without such waivers and reimbursements.

Average annual total return as of month-end (11/30/2014)
YTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)8.61%10.01%14.93%12.24%6.91%8.57%12/02/1996
S&P 500 Index13.98%16.86%20.93%15.96%8.06%n/a
Average annual total return as of quarter-end (09/30/2014)
QTDYTD1 year3 year5 year10 yearLifetimeInception date
NAV (view definition)-0.60%6.49%12.94%16.46%12.62%7.10%8.54%12/02/1996
S&P 500 Index1.13%8.34%19.73%22.99%15.70%8.11%n/a

Returns for less than one year are not annualized.

Expense ratio
Quarterly total returns @ NAV
Year1st quarter2nd quarter3rd quarter4th quarterAnnual return

Institutional Class shares are only available to certain investors. See the prospectus for more information. 

Portfolio characteristics - as of 11/30/2014
Share assets$149.9 million
Number of holdings459
Market cap (median)$6.01 billion
Market cap (weighted average)$77.78 billion
Portfolio turnover (last fiscal year)51%
Beta (relative to S&P 500 Index) (view definition)0.63
Annualized standard deviation, 3 years (view definition)6.13
SEC 30-day yield with waiver (view definition)2.53%
SEC 30-day yield without waiver (view definition)2.53%
Portfolio composition as of 11/30/2014Total may not equal 100% due to rounding.
Large cap value52.0%
High yield bonds15.9%
Convertible securities12.7%
Cash and cash equivalents10.1%
Real estate7.2%
Top 10 holdings as of 11/30/2014
Holdings are as of the date indicated and subject to change.
List excludes cash and cash equivalents.
Holding% of portfolio
Microsoft Corp.1.7%
Intel Corp.1.5%
Archer-Daniels-Midland Co.1.5%
Lowe's Cos. Inc.1.5%
Broadcom Corp.1.5%
CVS Health Corp.1.5%
Northrop Grumman Corp.1.5%
Johnson Controls Inc.1.5%
Cardinal Health Inc.1.5%
Cisco Systems Inc.1.4%
Total % Portfolio in Top 10 holdings15.1%

Holdings are as of the date indicated and subject to change.

Distribution history - annual distributions (Institutional Class)1,2
Distributions ($ per share)
YearCapital gains3Net investment

1If a Fund makes a distribution from any source other than net income, it is required to provide shareholders with a notice disclosing the source of such distribution (each a "Notice"). The amounts and sources of distributions reported above and in each Notice are only estimates and are not provided for tax reporting purposes. Each Fund will send each shareholder a Form 1099 DIV for the calendar year that will provide definitive information on how to report the Fund's distributions for federal income tax purposes. The information in the table above will not be updated to reflect any subsequent recharacterization of dividends and distributions. Click here to see recent Notices pertaining to the Fund (if any).

2Information on return of capital distributions (if any) is only provided from June 1, 2014 onward.

3Includes both short- and long-term capital gains.

Institutional Class shares are only available to certain investors. See the prospectus for more information. 

Bob Zenouzi

Bob Zenouzi 

Senior Vice President, Chief Investment Officer — Real Estate Securities and Income Solutions (RESIS)

Start date on the Fund: May 2006

Years of industry experience: 28

(View bio)

Damon Andres

Damon Andres, CFA

Vice President, Senior Portfolio Manager

Start date on the Fund: December 1996

Years of industry experience: 23

(View bio)

Ty Nutt

Ty Nutt  

Senior Vice President, Senior Portfolio Manager, Team Leader

Start date on the Fund: March 2005

Years of industry experience: 31

(View bio)

Anthony Lombardi

Anthony A. Lombardi, CFA

Vice President, Senior Portfolio Manager

Start date on the Fund: March 2005

Years of industry experience: 25

(View bio)

Bob Vogel

Robert A. Vogel Jr., CFA

Vice President, Senior Portfolio Manager

Start date on the Fund: March 2005

Years of industry experience: 22

(View bio)

Nik Lalvani

Nikhil G. Lalvani, CFA

Vice President, Senior Portfolio Manager

Start date on the Fund: October 2006

Years of industry experience: 17

(View bio)

Kristen Bartholdson

Kristen E. Bartholdson 

Vice President, Senior Portfolio Manager

Start date on the Fund: December 2008

Years of industry experience: 14

(View bio)

Wayne Anglace

Wayne A. Anglace, CFA

Vice President, Senior Portfolio Manager

Start date on the Fund: March 2010

Years of industry experience: 16

(View bio)

Ned Gray

Ned Gray, CFA

Senior Vice President, Chief Investment Officer — Global and International Value Equity

Start date on the Fund: March 2011

Years of industry experience: 28

(View bio)

Paul Matlack

Paul Matlack, CFA

Senior Vice President, Senior Portfolio Manager, Fixed Income Strategist

Start date on the Fund: December 2012

Years of industry experience: 29

(View bio)

Craig Dembeck

Craig C. Dembek, CFA

Senior Vice President, Co-Head of Credit Research, Senior Research Analyst

Start date on the Fund: December 2012

Years of industry experience: 20

(View bio)

John McCarthy

John P. McCarthy, CFA

Senior Vice President, Co-Head of Credit Research, Senior Research Analyst

Start date on the Fund: December 2012

Years of industry experience: 27

(View bio)

Christopher Testa

Christopher M. Testa, CFA

Senior Vice President, Senior Portfolio Manager

Start date on the Fund: June 2014

Years of industry experience: 28

(View bio)

Institutional Class shares are only available to certain investors. See the prospectus for more information. 

The table below describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

Shareholder fees
Maximum sales charge (load) imposed on purchases as a percentage of offering pricenone
Maximum contingent deferred sales charge (load) as a percentage of original purchase price or redemption price, whichever is lowernone
Annual fund operating expenses
Management fees0.65%
Distribution and service (12b-1) feesnone
Other expenses0.22%
Total annual fund operating expenses0.87%
Fee waivers and expense reimbursementsnone
Total annual fund operating expenses after fee waivers and expense reimbursements0.87%

Institutional Class shares are only available to certain investors. See the prospectus for more information. 

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Delaware Dividend Income Fund Quarterly commentary September 30, 2014

Within the Fund

For the third quarter of 2014, Delaware Dividend Income Fund (Class A and Institutional Class shares at net asset value) underperformed its benchmark, the S&P 500® Index.

Within the large-cap value equity portion of the Fund, relative performance benefited from investments in industrials and information technology. Stock selection in both sectors, as well as an overweight in technology, had positive effects. As a group, the portfolio’s three industrial stocks rose 9.6%, led by defense contractors Northrop Grumman (up 10.8%) and Raytheon (up 10.7%). In general, defense stocks benefited from expanding military activity in the Middle East, and from a rotation out of more-cyclical industrial companies, whose revenues have come under pressure because of slowing global growth. In technology, semiconductor manufacturer Intel led with a 13.5% increase. In July, the company reported second-quarter results that were ahead of levels it preannounced in June, which had also lifted the shares. Elsewhere in the portfolio, grain processing and servicing company Archer-Daniels-Midland was the top performer, up 16.4%. The company has been benefiting from abundant crop supplies as well as restructuring and cost-saving initiatives.

The largest drags on performance within the large-cap value equity portion of the Fund came from investments in financials. Shares of regional bank BB&T dropped -5.0% after the company announced second-quarter results that missed expectations. Loan growth was better than expected but net interest income remained under pressure and the bank’s progress on expense reductions has been slow. Energy was the next-weakest sector from an attribution standpoint. Each of the Fund’s holdings had a negative return owing to a stronger U.S. dollar, rising supply in the United States, and concerns about softening global demand. Exploration and production company ConocoPhillips fared the worst, declining -10.0%. Other weak performers in the large-cap value equity portion of the portfolio included Johnson Controls (down -­11.5%), a manufacturer of automotive interiors, batteries, and building control systems, and snack food maker Mondelez International (down -8.5%). Both companies have been contending with slowing product demand, primarily in emerging markets, where each has meaningful exposure.

Within the equity real estate investment trust (REIT) portion of the Fund, stock selection in the specialty, regional malls, and mixed sectors detracted from Fund performance. In the specialty sector, Fund holding EPR Properties underperformed as the company issued equity to pay down lines of credit that funded year-to-date acquisitions. We think EPR is now quite attractively valued, and we added to the position in September.

Stock selection in the diversified, lodging, and freestanding REIT sectors aided Fund performance. Fundamentals in the lodging sector are improving given limited supply and increasing demand from both corporate and leisure customers. Additionally, the sector has finally been able to sustain higher rates for hosting groups. Fund holding DiamondRock Hospitality has forecasted strong gains in revenue per available room (RevPAR) as its two-year renovation projects have begun to bear fruit. We think this bodes well for full-service hotel companies in general.

Within the Fund’s high yield bond portion, the top sector contributors were basic industry, financial services, and gaming. The top individual contributors were Salix Pharmaceuticals (gastrointestinal drugs), BWAY Holding (metal/plastic containers), and Hanesbrands (apparel). Salix gained on successful drug trials and merger-and-acquisition activity, BWAY launched a new debt issue that traded to a premium over issue price, and Hanesbrands gained on expanding margins and an accretive acquisition.

Sectors that detracted from performance included energy, media, and retail sectors. Bottom individual credits were Hercules Offshore (energy contract driller), Caesars Growth Properties (casino operator), and Midstates Petroleum (energy exploration and production). Hercules declined due to the unexpected loss of several drilling contracts, Caesars declined due to debt-restructuring negotiations at an affiliate, and Midstates declined due to the nearly $15-a-barrel decline in oil prices since mid-June.


Moving into the fourth quarter of 2014, several notable themes, possibilities, and developments bear monitoring. These include the following:

  • The fourth quarter, especially the latter part, has historically been a good one for equities. Given the improving trajectory of the U.S. economy and lack of favorable investment alternatives, we believe stocks could gain strength and move higher from here. Seasonality aside, some of the risks currently facing the market could continue to dampen investor enthusiasm and keep stock prices in check. These risks include the end of quantitative-easing stimulus, the likelihood that the U.S. Federal Reserve moves short-term interest rates up from zero next year, slowing economic activity in some key regions outside the U.S., and rising geopolitical conflicts. Our concerns about equity valuations and potential market risks mean that we remain defensively oriented with a focus on what we view as higher-quality businesses with relatively low price multiples and attractive risk-return profiles.
  • The volatility in interest rates, global equity markets, and currencies presents a challenge for long-term investment decision making in real estate equities. We have implemented a process that takes into account both real estate fundamentals and capital markets. Given that capital moves across borders daily, real estate investing has become about more than just local supply and demand. We believe short-term volatility should not obscure the potential long-term benefits of owning real estate equities: (1) stable and rising dividends, (2) inflation protection, and (3) diversification when holding these securities over the long term.
  • Given the world’s political and economic uncertainties, we believe “risk-off” trades and elevated volatility in the high yield bond market will continue, particularly as we approach year end when underwriters try to lock in gains and trading liquidity tends to experience normal seasonal erosion. Thus, technical conditions should remain challenging. However, with the U.S. economy on a moderate, noninflationary growth track, and with a majority of new high yield issuance dedicated to refinancing, we believe stable credit trends and the current low default environment should persist well into 2015.

In light of these circumstances, we believe there is a strong argument for seeking companies that, in our view, have most or all of the following characteristics: They (1) appear undervalued, (2) have strong cash flows, (3) maintain manageable debt levels, (4) operate diversified businesses, and (5) have a history of delivering consistent dividends.

Diversification may not protect against market risk.


The views expressed represent the Manager's assessment of the Fund and market environment as of the date indicated, and should not be considered a recommendation to buy, hold, or sell any security, and should not be relied on as research or investment advice. Information is as of the date indicated and subject to change.

Document must be used in its entirety.

Carefully consider the Fund's investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Fund's prospectus and its summary prospectus, which may be obtained by clicking the prospectus link located in the right-hand sidebar or calling 800 362-7500. Investors should read the prospectus and the summary prospectus carefully before investing.

Investing involves risk, including the possible loss of principal.

The Fund may invest up to 45% of its net assets in high yield, higher-risk corporate bonds.

Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.

The Fund may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Fund may be prepaid prior to maturity, potentially forcing the Fund to reinvest that money at a lower interest rate.

High yielding, noninvestment grade bonds (junk bonds) involve higher risk than investment grade bonds.

International investments entail risks not ordinarily associated with U.S. investments including fluctuation in currency values, differences in accounting principles, or economic or political instability in other nations.

Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility and lower trading volume.

The Funds are distributed by Delaware Distributors L.P., an affiliate of Delaware Management Holdings, Inc., and Macquarie Group Limited.

Not FDIC Insured | No Bank Guarantee | May Lose Value

Fund Finder

Daily pricing (as of 12/18/2014)

Institutional ClassPriceNet changeYTD
Max offer price$13.62n/an/a

Total net assets (as of 11/30/2014)

$778.0 million all share classes

Lipper ranking (as of 11/30/2014)

YTD ranking55 / 496
1 year55 / 483
3 years34 / 328
5 years23 / 206
10 years22 / 100
Lipper classificationFlexible Portfolio Funds

(View Lipper disclosure)

Benchmark, peer group

S&P 500® Index (view)

Lipper Flexible Portfolio Funds Average (view)

Additional information