Edgar Filing: DNP SELECT INCOME FUND INC

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-4915
--------

DNP Select Income Fund Inc.
------------------------------------------------------
(Exact name of registrant as specified in charter)

55 East Monroe Street, Chicago, Illinois 60603
------------------------------------------------------
(Address of principal executive offices) (Zip code)

Nathan I. Partain John R. Sagan
DNP Select Income Fund Inc. Mayer, Brown, Rowe & Maw
55 East Monroe Street 190 South LaSalle Street
Chicago, Illinois 60603 Chicago, Illinois 60603

(Name and address of agents for service)

Registrant's telephone number, including area code: (312) 368-5510
--------------

Date of fiscal year end: December 31
-----------

Date of reporting period: December 31, 2003
-----------------

Form N-CSR is to be used by management investment companies to file reports
with the Commission not later than 10 days after the transmission to
stockholders of any report that is required to be transmitted to stockholders
under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).
The Commission may use the information provided on Form N-CSR in its regulatory,
disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form
N-CSR, and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. (S) 3507.

ITEM 1. REPORTS TO STOCKHOLDERS.

The Annual Report to Stockholders follows.

Dear Fellow Shareholders:

Performance Review: We are pleased to report that your Fund had a total return
(market price change plus income) of 19.8% for the year ended December 31,
2003. In comparison, the S&P Utilities Index had a total return of 26.2%. A
composite of the S&P Utilities Index and the Lehman Utility Bond Index,
reflecting the stock and bond ratio of the Fund, had a total return of 21.9%.

On a longer-term basis, your Fund had a 3-year cumulative total return of
32.1%. In comparison, the S&P Utilities Index had a total return of -38.5%
while a composite of the S&P Utilities Index and the Lehman Utility Bond Index
had a total return of -27.1%.

Consistent with its primary objective of current income, the Fund declared
twelve monthly 6.5 cent per share dividends during 2003. The Fund also declared
an extra one and one-half cents per share in the final dividend of the year.
This "extra" amount was declared because the Fund's 2003 operating earnings
exceeded 78 cents per share and in order to avoid paying a federal excise tax
the Fund needed to, and did, distribute essentially 100% of its operating
income. This was the twelfth "extra" dividend in the last sixteen years.

The 6.5 cent per share monthly rate, without compounding, would be 78 cents
annualized, or a 7.12% common stock dividend yield based on the December 31,
2003 closing price of $10.96 per share. That yield compares favorably with the
quarter-end yields of 3.54% on the Dow Jones Utility Index and 3.68% on the
S&P Utilities Index.

No "Late Trading" or "Market Timing" in your Fund: Some leading open-end mutual
fund companies are under investigation or have entered into settlements with
federal securities regulators for allegedly participating in schemes which
resulted in the dilution of the value of their mutual funds to the detriment of
long-term shareholders. The investigation has largely focused on techniques
known as "late trading" and "market timing."

Late trading and market timing schemes are only relevant to open-end mutual
funds. Investors in closed-end funds such as DNP are not subject to that kind
of manipulation. The shares of a closed-end fund are continuously valued on
public stock exchanges during the trading day, and even after the domestic
markets close, potential buyers must still pay the price at which an informed
person is willing to sell.

Industry Reviews: Every year, the Fund's analysts present to the Board a review
of key factors affecting their industries and the companies in which the Fund
invests. Following is a brief summary of this year's presentations.

REITs Add Value: Last year was the 10/th/ year REIT stocks have been included
in the Fund's portfolio. REIT yields are currently among the highest in the
stock market. The National Association of Real Estate Investment Trusts Equity
Index (NAREIT) finished the year with a yield of 5.5%. For the last ten years,
more than 60% of the return from the NAREIT Equity Index has been generated
from income. We believe this trend will continue in the future.

REITs also provide an opportunity to diversify the Fund's portfolio and reduce
risk. Studies published by Ibbotson Associates indicate that REITs can provide
meaningful diversification benefits in portfolios. The Fund's REIT holdings are
diversified across many of the 13 different property types that make up the
REIT sector. At any given time some property types may demonstrate absolute or
relative operating strength while others demonstrate absolute or relative
weakness. Examples today would include the strength in regional malls and
shopping centers versus the weakness in office and apartment properties. Our
REIT holdings are weighted to reflect the opportunity in the stronger property
types. We continue to like the attributes REITs bring to the Fund's portfolio.

Telecommunications--An Industry Still in Transition: While the
telecommunications industry has been through a bit of a rough patch the last
four years, there was a measure of stability in 2003. Balance sheet problems
caused by heavy investment in new technologies have been largely resolved,
leading to increased returns to shareholders in the form of dividends and share
buybacks. In addition, operating fundamentals in the local wireline sector are
showing stabilization.

One reason for this stabilization in the operating results of local telephone
incumbents is the practice of bundling. As regulators have allowed the regional
Bell companies to enter the long distance market, the ability to offer a
"bundle" of products has been a necessary counter to competitors. The most
commonly bundled services include local telephone service, long distance
telephone service, and broadband Internet access, generally all on one bill,
which is very popular with consumers. However, there is a downside to bundling.
Price discounts associated with bundles, together with higher marketing costs
to sell them, have hurt profit margins. We anticipate some margin recovery, but
given the significant change in the industry landscape over the past four
years, we believe that margins will remain at lower than historic levels for
the foreseeable future.

The wireless sector of the telecommunications industry is undergoing its own
transition. Last year was a banner year for subscriber growth and market
penetration, and we expect growth to continue in 2004. In addition, data and
"push-to-talk" features are becoming more widely available and helping the
market grow. Consolidation, which has long been expected, may finally arrive
this year, which could benefit firms in the sector if the number of competitors
is reduced. Further, wireless number portability was introduced late in 2003,
allowing customers to keep their wireless telephone numbers yet switch
providers. While the actual volume of switching carriers has been lower than
was predicted in the media, we expect switching activity to build over the
course of 2004.

Clearly, the telecommunication industry continues to experience a major
transformation. Regulation, industry structure, competitive threats, both new
and old, and the lack of a recovery in telecom demand will make 2004 yet
another year of transition for the industry. Strict financial discipline in the
form of productivity improvements and capital spending controls will be keys to
any successful corporate strategy. We remain confident in our holdings of
financially strong incumbent local telecommunications companies and are
encouraged by their managements' actions to return value to shareholders in the
form of increased dividends.

Premium Gas: The price of natural gas dominated energy headlines in 2003.
Energy prices in general were high, but concerns about the ability of natural
gas supply to meet demand raised consumer concerns. As a result, gas prices
were quite volatile during the year, first declining sharply during the summer
as winter stocks were replenished and then jumping as the heating season began.
Even a warmer than normal start to the heating season did not do much to
relieve pressures on the price of natural gas.

Over the longer term, new supply sources will develop, such as expanded
domestic liquified natural gas facilities. However, new sources typically take
years to significantly increase total supply. In the meantime, we expect gas
prices to experience continued volatility, as production from existing wells
wanes and additional supply is more difficult (and expensive) to come by.

A number of natural gas pipeline companies that had impaired their financial
strength in 2001 and 2002 as a result of their unsuccessful efforts to become
national energy merchants experienced superb price performance in 2003 as a
result of refocusing on their basic business. The stock price of one company,
for example, soared over 250% in 2003 after losing almost 90% in 2002, but was
still down over 68% over the last 5 years. The performance of these companies
boosted the S&P Utilities Index in 2003, and a major reason why your Fund
lagged the index in 2003 is that we tend not to invest in these companies.
Because many of these companies are high-risk and pay little or no dividends,
they are not appropriate investments for your Fund. Your Fund continues

to focus on low-risk companies with stable growth rates that we believe will be
able to maintain or grow their dividends annually. That is why your Fund
significantly outperformed the S&P Utilities Index on a 3-year cumulative total
return basis.

Electrics on the Road to Recovery: The year 2003 was the first since 1999 that
electric industry news was not dominated by negative headlines. The electric
industry has endured the California energy crisis, energy marketing and trading
scandals, accounting investigations and credit rating and liquidity crises.
Leading the way to recovery has been a general shift by managements to
"back-to-basics" strategies. Many companies are once again primarily focusing
on their core regulated utility business. Non-core operations such as merchant
generating plants, international investments, marketing and trading activities
and telecom ventures are being shut down, walked away from or sold. Business
plans related to evolving national competitive electricity markets have been
significantly reduced. We expect that state agencies and regional issues will
once again play a dominant role in utility regulation. The credit crisis of
2002 provided the impetus to repair over-leveraged balance sheets. Nearly $25
billion of utility equity was issued during 2002 and 2003. We expect that the
financial recovery in the electric sector will continue through 2004.

One of the biggest disappointments of last year was Congress's failure to pass
the Energy Bill. The electric component of the bill contained some positive
measures that would have spurred needed investment in the nation's transmission
system and improved its reliability. The August 14, 2003 blackout highlighted
the need for such investment. Given that 2004 is an election year, we think it
is unlikely that there will be passage of a bill containing comprehensive
energy legislation this year. In terms of electric reliability, there has been
some talk about single-issue legislation. In any case, we expect to see an
increased focus on electricity reliability issues by the Federal Energy
Regulatory Commission and by state regulatory agencies.

Electric companies have long been among the highest dividend paying companies
in the S&P 500. The newly reduced tax rates on dividends, coupled with utility
"back-to-basics" strategies, have resulted in renewed emphasis on dividend
payouts by electric company managements. We see fewer electric companies
projecting 10% or higher earnings growth but no dividend growth. Increasingly,
companies are targeting modest earnings growth and dividend growth. We view
this trend as good for the sector and good for your Fund. Our electric holdings
are weighted toward those companies that are committed to dividend payments and
dividend growth.

Board of Directors Meeting: At the December 2003 Board of Directors' meeting,
the Board declared the following monthly dividends:

Cents Per Share Record Date Payable Date
--------------- ----------- ------------

8.0 December 31 January 12
6.5 January 30 February 10
6.5 February 27 March 10

At the regular February 2004 Board of Directors' meeting, the Board declared
the following monthly dividends:

Cents Per Share Record Date Payable Date
--------------- ----------- ------------

6.5 March 31 April 12
6.5 April 30 May 10
6.5 May 28 June 10

Dividends and Taxes: At the February 2004 Board Meeting, the Board reviewed the
Fund's dividend policy and reaffirmed the current 6.5 cents per share per month
distribution rate.

The Tax Relief Reconciliation Act of 2003 lowered the income tax rates on
qualifying dividends and long-term capital gains. In general, qualifying
dividend income is defined as dividends of U.S. corporations and qualified
foreign corporations, with the exception of certain types of preferred stock
and REITs, and subject to a holding period requirement. Your Fund has a
significant commitment to bonds, REITs, and preferred stocks, but is able to
pass through to shareholders the tax treatment for all dividends that do
qualify, and expects that qualifying dividends will constitute a growing
proportion of its dividends in the future.

When the Board first increased the Fund's monthly dividend rate to 6.5 cents
from 6.0 cents in 1997, it recognized that a portion of the dividend in future
years might result in a return of capital to shareholders if the distributions
exceeded the current earnings of the Fund. To date that has not occurred.
However, since interest rates are at or near 40-year lows and utility common
stock dividends are well below their long-term average, it remains possible
that the Fund's dividend distribution in the future may include a portion of a
return of capital.

The actual determination of the characterization of all Fund distributions
(specifying which portion is ordinary income, qualifying dividend income, short
or long term capital gains or return of capital, as the case may be) is made at
each year-end and is reported to shareholders on Form 1099-DIV, which is mailed
every year in late January.

Automatic Dividend Reinvestment Plan and Direct Deposit Service--The Fund has a
dividend reinvestment plan available as a benefit to all registered
shareholders. Currently, and as long as the market price of the common stock of
the Fund exceeds or is equal to the net asset value per share, new shares for
the dividend reinvestment program are issued at the greater of either net asset
value or 95% of the market price. For example, as of the February 10, 2004
dividend payment date, the 5% dividend reinvestment discount was 55.3 cents per
share. If the market price per share of common stock is below the net asset
value per share, shares are purchased in the open market at prevailing market
prices, plus any brokerage commissions paid by The Bank of New York.

Those shareholders whose shares are held for them by a brokerage house or
nominee in "street-name" may not participate in the Fund's automatic dividend
reinvestment plan. For such shareholders desiring automatic dividend
reinvestment, we suggest you contact your broker or other nominee.

As an added service, without cost to the shareholder, the Fund offers direct
deposit service through electronic funds transfer to all registered
shareholders currently receiving a monthly dividend check. This service is
offered through The Bank of New York. For more information and/or an
authorization form on automatic dividend reinvestment or direct deposit, please
contact The Bank of New York (1-877-381-2537 or http://stock.bankofny.com).

Visit us on the Web--You can obtain the most recent shareholder financial
report and dividend information at our web site, http://www.dnpselectincome.com.

We appreciate your interest in DNP Select Income Fund Inc., and we will
continue to do our best to be of service to you.

/s/ Claire V. Hansen
/s/ Nathan I. Partain

Claire V. Hansen, CFA
Nathan I. Partain, CFA
Chairman
President and Chief
Executive Officer

REPORT OF INDEPENDENT AUDITORS

To the Stockholders and Board of Directors of
DNP Select Income Fund Inc.:

We have audited the accompanying statement of asset and liabilities of DNP
Select Income Fund Inc. including the schedule of investments, as of December
31, 2003, and the related statements of operations and cash flows for the year
then ended and the statement of changes in net assets and the financial
highlights for each of the two years in the period then ended. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits. The financial
highlights for the three years in the period ended December 31, 2001 were
audited by other auditors who have ceased operations. Those auditors expressed
an unqualified opinion on those financial highlights in their report dated
February 5, 2002.

We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of December 31, 2003, by correspondence
with the custodian. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of DNP
Select Income Fund Inc. at December 31, 2003, the results of its operations and
its cash flows for the year then ended and the changes in its net assets and
the financial highlights for each of the two years in the period then ended, in
conformity with accounting principles generally accepted in the United States.

Chicago, Illinois
February 9, 2004
/s/ Ernst & Young LLP

DNP SELECT INCOME FUND INC.
SCHEDULE OF INVESTMENTS
December 31, 2003

COMMON STOCKS--83.4%

Market
Value
Shares Company (Note 1)
--------- ------- --------------

[_] ELECTRIC--47.1%

1,001,000 Ameren Corp.................................... $ 46,046,000
800,000 Cinergy Corp................................... 31,048,000
1,000,000 Consolidated Edison Inc........................ 43,010,000
796,000 Dominion Resources Inc......................... 50,808,680
2,000,000 DQE Inc........................................ 36,680,000
1,000,000 DTE Energy Co.................................. 39,400,000
1,100,000 Energy East Corp............................... 24,640,000
1,000,000 Exelon Corp.................................... 66,360,000
2,000,000 FirstEnergy Corp............................... 70,400,000
600,000 FPL Group Inc.................................. 39,252,000
1,080,000 Iberdrola S.A. (Spain)......................... 21,346,619
215,000 National Grid Group PLC ADR.................... 7,793,750
770,000 National Grid Transco PLC (United Kingdom)..... 5,506,794
1,318,600 NSTAR.......................................... 63,952,100
1,375,000 Progress Energy Inc............................ 62,232,500
1,000,000 Public Service Enterprise Group Inc............ 43,800,000
850,000 Scottish & Southern Energy PLC (United Kingdom) 10,225,381
100,000 Scottish & Southern Energy PLC ADR............. 12,047,760
368,700 Scottish Power PLC ADR......................... 10,021,266
2,300,000 Southern Co.................................... 69,575,000
1,500,000 Vectren Corp................................... 36,975,000
580,500 WPS Resources Corp............................. 26,836,515

--------------
817,957,365

[_] GAS--7.4%

926,000 AGL Resources Inc.............................. 26,946,600
1,000,000 Keyspan Corp................................... 36,800,000
900,000 Peoples Energy Corp............................ 37,836,000
1,000,000 WGL Holdings Inc............................... 27,790,000

--------------
129,372,600

[_] TELECOMMUNICATION--16.0%

1,000,000 Alltel Corp.................................... 46,580,000
1,730,000 BellSouth Corp................................. 48,959,000

The accompanying notes are an integral part of the financial statements.

DNP SELECT INCOME FUND INC.
SCHEDULE OF INVESTMENTS--(Continued)
December 31, 2003

Market
Value
Shares Company (Note 1)
--------- ------- --------------

1,250,000 Chunghwa Telecom Co. Ltd............. $ 18,125,000
1,637,230 SBC Communications Inc............... 42,682,586
856,250 Telecom Corp. of New Zealand Ltd. ADR 24,189,063
560,000 Telefonica S.A. ADR.................. 24,746,400
1,068,400 Telstra Corp. Ltd. ADR............... 19,541,036
1,519,000 Verizon Communications Inc........... 53,286,520

--------------
278,109,605

[_] NON-UTILITY--12.9%

181,960 Archstone Smith Trust................ 5,091,241
73,000 Arden Realty Inc..................... 2,214,820
241,300 Boston Properties Inc................ 11,628,247
271,400 CBL & Associates Properties Inc...... 15,334,100
85,200 Camden Property Trust................ 3,774,360
179,816 Centerpoint Properties Corp.......... 13,468,218
339,300 Chelsea Property Group Inc........... 18,597,033
163,479 Corporate Office Properties Trust.... 3,433,059
320,300 Developers Diversified Realty Corp... 10,752,471
160,000 Duke Realty Corp..................... 4,960,000
145,500 Equity Office Properties Trust....... 4,168,575
150,000 Equity Residential Properties Trust.. 4,426,500
59,000 Essex Property Trust Inc............. 3,788,980
600,600 General Growth Properties Inc........ 16,666,650
53,600 Health Care Properties Investors Inc. 2,722,880
102,344 Healthcare Realty Trust Inc.......... 3,658,798
80,000 Home Properties of New York Inc...... 3,231,200
76,000 Hospitality Properties Trust......... 3,137,280
193,939 iStar Financial Inc.................. 7,544,227
200,200 The Macerich Co...................... 8,908,900
14,000 Mack-Cali Realty Corp................ 582,680
146,460 Maguire Properties Inc............... 3,558,978
218,400 Pan Pacific Retail Properties Inc.... 10,406,760
291,480 ProLogis Trust....................... 9,353,593
50,000 Realty Income Corp................... 2,000,000
205,800 S.L. Green Realty Corp............... 8,448,090
60,499 Shurgard Storage Centers Inc. Class A 2,277,787

The accompanying notes are an integral part of the financial statements.

DNP SELECT INCOME FUND INC.
SCHEDULE OF INVESTMENTS--(Continued)
December 31, 2003

Market
Value
Shares Company (Note 1)
--------- ------- --------------

281,736 Simon Property Group Inc................... $ 13,055,646
278,240 United Dominion Realty Trust Inc........... 5,342,208
252,000 Vornado Realty Trust....................... 13,797,000
168,714 Weingarten Realty Investors................ 7,482,466
--------------
223,812,747
--------------
Total Common Stocks (Cost--$1,299,293,269). 1,449,252,317
--------------

PREFERRED STOCKS--17.2%

[_] UTILITY--17.2%

200,000 Alltel Corp. 7 3/4% due 5/17/05............ 9,940,000
750,000 Ameren Corp. 9 3/4% due 5/15/05............ 22,305,000
1,200,000 Centurytel Inc. 6 7/8% due 5/15/05......... 32,400,000
626,200 Cinergy Corp. 9 1/2% due 2/16/05........... 39,888,940
450,000 Dominion Resources Inc. 9 1/2% due 11/16/04 25,762,500
986,700 DTE Energy Co. 8 3/4% due 8/16/05.......... 25,279,254
550,000 Duke Energy Corp. 8 1/4% due 5/18/04....... 7,612,000
223,500 EIX Trust II Series B 8.60% due 10/29/29... 5,685,840
500,000 FPL Group Inc. 8 1/2% due 2/16/05.......... 28,865,000
412,000 Keyspan Corp. 8 3/4% due 5/16/05........... 22,206,800
775,000 Oneok Inc. 8 1/2% due 2/16/06.............. 23,846,750
500,000 Sempra Energy 8 1/2% due 5/17/05........... 14,230,000
172,700 Southern Union Co. 5 3/4% due 8/16/05...... 10,206,570
400,000 TXU Corp. 8 3/4% due 11/16/05.............. 13,880,000
500,000 TXU Corp. 8 1/8% due 5/16/06............... 16,805,000
--------------
Total Preferred Stocks (Cost--$290,141,593) 298,913,654
--------------

The accompanying notes are an integral part of the financial statements.

DNP SELECT INCOME FUND INC.
SCHEDULE OF INVESTMENTS--(Continued)
December 31, 2003

BONDS--37.0%

Ratings*
--------------------------
Standard Market
and Value
Par Value Company Fitch Moody's Poor's (Note 1)
----------- ------- --------- ------- -------- --------------

[_] ELECTRIC--11.6%
$ 5,500,000 Boston Edison Co.
7.80%, due 3/15/23.............. AA- A1 A $ 5,616,342
18,050,000 Comed Financing II
8 1/2%, due 1/15/27............. Not Rated Baa2 BBB 21,165,556
7,500,000 Commonwealth Edison Co.
9 7/8%, due 6/15/20............. A- A3 A- 8,424,503
24,000,000 Dominion Resources Capital Trust
7.83%, due 12/01/27............. Not Rated Baa2 BBB- 26,198,976
5,000,000 El Paso Electric Co. Series E
9.40%, due 5/01/11.............. Not Rated Baa3 BBB- 5,854,485
5,000,000 Illinois Power Co.
7 1/2%, due 7/15/25............. CCC+ B3 B 4,975,000
13,725,000 Niagara Mohawk Power Corp.
8 7/8%, due 5/15/07............. Not Rated Baa3 A- 16,104,297
5,000,000 Progress Energy Inc.
7 3/4%, due 3/01/31............. BBB- Baa2 BBB- 5,847,470
9,000,000 PSEG Power LLC
8 5/8%, due 4/15/31............. Not Rated Baa1 BBB 11,633,985
22,750,000 Puget Capital Trust
8.231%, due 6/01/27............. Not Rated Ba1 BB 21,553,464
25,000,000 Southern California Edison
8.00%, due 2/15/07.............. BBB- Baa2 BBB 28,718,750
13,000,000 Southern Co. Capital Trust II
8.14%, due 2/15/27.............. Not Rated Baa1 BBB+ 14,648,179
10,000,000 Virginia Electric & Power Co.
8 5/8%, due 10/01/24............ Not Rated A2 A- 19,357,676
17,700,000 Virginia Electric & Power Co.
8 1/4%, due 3/01/25............. Not Rated A2 A- 10,837,500
--------------
200,936,183

[_] GAS--4.2%

5,000,000 KN Energy Inc.
7 1/4%, due 3/01/28............. BBB Baa2 BBB 5,579,245

The accompanying notes are an integral part of the financial statements.

DNP SELECT INCOME FUND INC.
SCHEDULE OF INVESTMENTS--(Continued)
December 31, 2003

Ratings*
--------------------------
Standard Market
and Value
Par Value Company Fitch Moody's Poor's (Note 1)
----------- ------- --------- ------- -------- --------------

$10,000,000 Northern Border Partners LP
8 7/8%, due 6/15/10........ BBB+ Baa2 BBB+ $ 12,054,580
15,000,000 Panhandle Eastern
8 5/8%, due 4/15/25........ BBB- Baa3 BBB 16,241,490
6,488,000 Southern Union Co.
7.60%, due 2/01/24......... BBB Baa3 BBB 7,199,630
8,850,000 Southern Union Co.
8 1/4%, due 11/15/29....... BBB Baa3 BBB 10,642,275
10,000,000 TE Products Pipeline Co.
7.51%, due 1/15/28......... Not Rated Baa3 BBB 11,046,830
9,000,000 Trans-Canada Pipeline
9 1/8%, due 4/20/06........ Not Rated A3 BBB+ 10,282,914
--------------
73,046,964

[_] TELECOMMUNICATION--8.8%

15,000,000 AT&T Corporation
8.35%, due 1/15/25......... BBB Baa2 BBB 15,889,920
25,000,000 British Telecom PLC
8 7/8%, due 12/15/30....... A Baa1 A- 32,808,150
5,000,000 Centurytel Inc.
6 7/8%, due 1/15/28........ BBB+ Baa2 BBB+ 5,286,100
10,000,000 Centurytel Inc.
8 3/8%, due 10/15/10....... BBB+ Baa2 BBB+ 12,151,480
10,000,000 France Telecom
7 3/4%, due 3/01/11........ BBB- Baa3 BBB 12,030,470
13,250,000 GTE California Inc.
8.07%, due 4/15/24......... AA A1 A+ 13,965,580
17,625,000 GTE Corp.
7.90%, due 2/01/27......... A+ A3 A+ 19,392,558
5,000,000 GTE North Inc., Series C
7 5/8%, due 5/15/26........ AA A1 A+ 5,325,175
12,243,000 TCI Communications Inc.
8.65%, due 9/15/04......... BBB Baa3 BBB 12,908,309
4,314,000 Tritel PCS Inc.
10 3/8%, due 1/15/11....... BBB Baa2 BBB 5,164,380

The accompanying notes are an integral part of the financial statements.

DNP SELECT INCOME FUND INC.
SCHEDULE OF INVESTMENTS--(Continued)
December 31, 2003

Ratings*
----------------------------
Standard Market
and Value
Par Value Company Fitch Moody's Poor's (Note 1)
----------- ------- --------- --------- -------- --------------

$10,500,000 Verizon Global Funding Corp.
7.75%, due 12/01/30................ A+ A2 A+ $ 12,380,225
5,000,000 Vodaphone Group PLC
7 7/8%, due 2/15/30................ A A2 A 6,165,085
--------------
153,467,432

[_] NON-UTILITY--12.4%

#15,000,000 American General Finance Corp.
1.31%, due 5/28/04................. A+ A1 A+ 15,000,000
#50,000,000 Bear Stearns Companies Inc. Master
Note
1.15%, due 1/02/04................. A+ A1 A 50,000,000
#25,000,000 Belford U.S. Capital Co. LLC
1.14%, due 6/18/04................. AAA Not Rated AAA 25,015,025
#25,000,000 CIT Group Inc.
1.90%, due 4/08/04................. A A2 A 25,045,600
4,050,000 Continental Cablevision Inc.
9.50%, due 8/01/13................. Not Rated Baa3 BBB 4,680,273
8,000,000 Dayton Hudson Corp.
9 7/8%, due 7/01/20................ A A2 A+ 11,371,272
#25,000,000 Household Finance Corp.
1.52%, due 5/28/04................. A A1 A 25,042,850
#10,000,000 Liberty Lighthouse U.S. Capital Co.
LLC
1.11%, due 7/15/04................. AAA Not Rated AAA 10,005,040
#25,000,000 Morgan Stanley Dean Witter & Co.
1.40%, Series C, due 5/18/04....... AA- Aa3 A+ 25,042,950
#25,000,000 Salomon Smith Barney Holdings Inc.
1.52%, Series K, due 5/07/04....... AA+ Aa1 AA- 25,024,075
--------------
216,227,085
--------------
Total Bonds (Cost--$616,196,568)................................ 643,677,664
--------------

The accompanying notes are an integral part of the financial statements.

DNP SELECT INCOME FUND INC.
SCHEDULE OF INVESTMENTS--(Continued)
December 31, 2003

Market
Par Value/ Value
Shares Company (Note 1)
------------- ------- --------------

U.S. TREASURY OBLIGATION--0.1%
$ 2,000,000 U.S. Treasury Bond
10 3/4%, due 8/15/05..................................................... $ 2,292,970
--------------
Total U.S. Treasury Obligation (Cost--$2,133,972)........................ 2,292,970
--------------

U.S. GOVERNMENT AGENCY OBLIGATIONS (1)--8.8%

125,000,000 Federal Home Loan Mortgage Corp.
9%, due 2/26/04.......................................................... 126,479,875
25,000,000 Federal Home Loan Mortgage Corp.
9%, due 11/15/13......................................................... 26,590,350
--------------
Total U.S. Government Agency Obligations (Cost--$154,203,081)............ 153,070,225
--------------

MONEY MARKET INSTRUMENTS--18.8%

# 4,985,853 AIM STIC Liquid Assets Portfolio......................................... 4,985,853
45,000,000 Citigroup Inc.
1.04%, due 1/05/04....................................................... 44,994,800
#50,000,000 Credit Suisse First Boston LLC Repurchase Agreement,
1.05%, dated 12/31/03, due 1/02/04, collateralized by $290,896 Auburn
Hills Trust DCX 12 3/8% due 5/01/20; $3,011,814 City National Corp.
5 1/8% due 2/15/13; $1,092,539 Constellation Energy Group 6.35% due
4/01/07; $4,562,109 Constellation Energy Group 7.00% due 4/01/12;
$154,755 Daimler Chrysler N.A. Holdings 6.90% due 9/01/04; $4,019
ERP Operating LP 5.20% due 4/01/13; $23,888,568 Ford Motor Credit Co.
5 5/8% due 10/01/08; $7,654,961 Ford Motor Credit Co. 7 3/8% due 2/01/11;
$2,601,301 General Motors Acceptance Corp. 1.88% due 1/20/04;
$3,035,021 General Motors Acceptance Corp. 5 1/8% due 5/09/08;
$1,029 General Motors Acceptance Corp. 6 7/8% due 9/15/11;
$160,132 ITT Corp. 7.40% due 11/15/25; $1,546,514 Ohio Power Co.
5 1/2% due 2/15/13; $1,174,380 Sempra Energy 7.95% due 3/01/10 and
$1,143,750 Transocean Inc. 7 1/2% due 4/15/31............................ 50,000,000
#50,000,000 Deutsche Bank Securities Inc. Repurchase Agreement
1.06%, dated 12/31/03, due 1/02/04, collateralized by $24,305,745 CSFB
1998-C2 A2 6.30% CMO due 11/11/30 and $26,694,803 SLMA 2001-1 A2L
1.31% ABS due 4/25/12.................................................... 50,000,000

The accompanying notes are an integral part of the financial statements.

DNP SELECT INCOME FUND INC.
SCHEDULE OF INVESTMENTS--(Continued)
December 31, 2003

Market
Par Value/ Value
Shares Company (Note 1)
------------ ------- --------------

$ 45,000,000 GE Capital Corp.
1.00%, due 1/06/04.......................................................... $ 44,993,750
# 25,000,000 Goldman Sachs & Co. Inc. Repurchase Agreement, 1.05%, dated 12/30/03, due
01/02/04, collateralized by $25,500,000 Merrill Lynch & Co.
2.49% due 5/05/06........................................................... 25,000,000
# 19,140,987 Janus Institutional Cash Reserves Fund...................................... 19,140,987
# 25,000,000 Main Street Warehouse Funding
1.25%, due 01/22/04......................................................... 25,000,000
# 50,000,000 Merrill Lynch Pierce Fenner & Smith Inc. Repurchase Agreement, 1.05%, dated
12/31/03, due 01/02/04, collateralized by $15,397,175 Daimler Chrysler N.A.
Holdings 7.40% due 1/20/05; $14,239,745 Whirlpool Corp. 9.10% due 2/01/08;
$5,283,998 Whirlpool Corp. 8.60% due 5/01/10; and $17,042,049 Zurich Capital
Trust I 144A 8.37% due 6/01/37.............................................. 50,000,000
# 11,820,000 Neptune Funding Corp.
1.00%, due 01/02/04......................................................... 11,820,000
--------------
Total Money Market Instruments (Amortized Cost--$325,909,560)............... 325,935,390
--------------
TOTAL INVESTMENTS (Cost--$2,687,878,043) (165.3%)........................... $2,873,142,220
==============

--------
*Bond ratings are not covered by the report of independent auditors.

#This security was purchased with the cash collateral from securities loaned.

The percentage shown for each investment category is the total value of that
category as a percentage of the net assets applicable to common stock of the
Fund.

(1)Obligations of U.S. Government sponsored entities are not issued or
guaranteed by the United States Treasury.

The accompanying notes are an integral part of the financial statements.

DNP SELECT INCOME FUND INC.
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2003

ASSETS:
Investments at market value:
Common stocks (cost $1,299,293,269)....................................................... $1,449,252,317
Preferred stocks (cost $290,141,593)...................................................... 298,913,654
Bonds (cost $616,196,568)................................................................. 643,677,664
U.S. Treasury obligation (cost $2,133,972)................................................ 2,292,970
U.S. government agency obligations (cost $154,203,081).................................... 153,070,225
Money market instruments (amortized cost $325,909,560).................................... 325,935,390
--------------
Total investments at value (cost--$2,687,878,043) including $420,347,640 of securities
loaned................................................................................ 2,873,142,220
Cash and cash equivalents.................................................................. 9,405,825
Receivables:
Interest.................................................................................. 9,907,557
Dividends................................................................................. 3,613,091
Securities lending income................................................................. 75,334
Prepaid expenses........................................................................... 59,950
--------------
Total Assets............................................................................ $2,896,203,977
==============
LIABILITIES:
Due to Adviser (Note 2).................................................................... 3,369,908
Due to Administrator (Note 2).............................................................. 863,023
Dividends payable on common stock.......................................................... 17,503,580
Interest payable on remarketed preferred stock............................................. 377,963
Accrued expenses........................................................................... 893,316
Payable for securities lending broker rebates.............................................. 214,988
Commercial paper outstanding (Note 6)...................................................... 198,974,940
Payable upon return of securities on loan.................................................. 435,720,120
Remarketed preferred stock ($.001 par value; 100,000,000 shares authorized and 5,000 shares
issued and outstanding, liquidation preference $100,000 per share) (Note 5).............. 500,000,000
--------------
Total Liabilities....................................................................... $1,157,917,838
--------------
CAPITAL:
Common stock ($.001 par value; 250,000,000 shares authorized and 218,794,755 shares issued
and outstanding) (Note 4)................................................................ 218,795
Paid-in surplus (Note 4)................................................................... 1,961,812,420
Accumulated net realized loss on investments............................................... (396,512,425)
Distributions in excess of book net investment income...................................... (12,501,788)
Net unrealized appreciation (depreciation) on investments and foreign currency translation. 185,269,137
--------------
Net assets applicable to common stock (equivalent to $7.94 per share based on
218,794,755 shares outstanding)....................................................... 1,738,286,139
--------------
Total Liabilities and Capital........................................................... $2,896,203,977
==============

The accompanying notes are an integral part of the financial statements.

DNP SELECT INCOME FUND INC.
STATEMENT OF OPERATIONS
For the year ended December 31, 2003

INVESTMENT INCOME:
Interest........................................................................... $ 34,221,737
Dividends (less withholding tax of $710,701)....................................... 154,884,670
Securities lending income, net..................................................... 1,005,149
------------
Total investment income.......................................................... 190,111,556

EXPENSES:
Management fees (Note 2)........................................................... 13,069,523
Remarketed preferred stock interest expense (Note 5)............................... 6,008,643
Commercial paper interest expense (Note 6 )........................................ 2,802,060
Administrative fees (Note 2)....................................................... 3,363,980
Transfer agent fees................................................................ 474,500
Custodian fees..................................................................... 511,000
Remarketing agent fees............................................................. 1,267,360
Shareholder reports................................................................ 716,400
Professional fees.................................................................. 633,900
Directors' fees (Note 2)........................................................... 590,200
Other expenses..................................................................... 1,049,818
------------
Total expenses................................................................... 30,487,384
------------
Net investment income............................................................ 159,624,172
------------

REALIZED AND UNREALIZED GAIN (LOSS):
Net realized loss on investments................................................... (26,744,282)
Net change in unrealized appreciation (depreciation) on investments and foreign
currency translation............................................................. 159,347,831
------------
Net realized and unrealized gain................................................... 132,603,549
------------
Net increase in net assets applicable to common shares resulting from operations. $292,227,721
============

The accompanying notes are an integral part of the financial statements.

DNP SELECT INCOME FUND INC.
STATEMENTS OF CHANGES IN NET ASSETS

For the year For the year
ended ended
December 31, December 31,
2003 2002
-------------- --------------

FROM OPERATIONS:
Net investment income.................................................. $ 159,624,172 $ 169,842,194
Net realized gain (loss)............................................... (26,744,282) (299,216,873)
Net change in unrealized appreciation/(depreciation) on investments and
foreign currency translation......................................... 159,347,831 (87,406,287)
Distributions to preferred shareholders from net investment income..... -- (8,213,811)
-------------- --------------
Net increase (decrease) in net assets applicable to common stock
resulting from operations.......................................... 292,227,721 (224,994,777)

DISTRIBUTIONS TO COMMON STOCKHOLDERS FROM:
Net investment income--(Note 3)........................................ (173,011,472) (167,637,718)
-------------- --------------
Total distributions to common stockholders........................... (173,011,472) (167,637,718)

FROM CAPITAL STOCK TRANSACTIONS (Note 4):
Shares issued to common stockholders from dividend reinvestment........ 26,099,457 25,906,297
-------------- --------------
Net increase in net assets derived from capital share transactions..... 26,099,457 25,906,297
-------------- --------------
Total increase (decrease)............................................ 145,315,706 (366,726,198)

TOTAL NET ASSETS APPLICABLE TO COMMON STOCK:
Beginning of year...................................................... 1,592,970,433 1,959,696,631
-------------- --------------
End of year (including distributions in excess of book net investment
income of $12,501,788, and $2,418,188, respectively)................. $1,738,286,139 $1,592,970,433
============== ==============

The accompanying notes are an integral part of the financial statements.

DNP SELECT INCOME FUND INC.
STATEMENT OF CASH FLOWS
For the year ended December 31, 2003

Cash Flows From (For):
OPERATING ACTIVITIES

Interest received....................................................... $ 35,463,796
Income dividends received............................................... 155,054,191
Securities lending income, net.......................................... 1,041,571
Operating expenses paid (excluding interest and dividends).............. (21,246,985)
Interest paid to preferred shareholders................................. (6,204,410)
Interest paid on commercial paper....................................... (3,458,008)
---------------
Net cash provided by operating activities........................................... $ 160,650,155
INVESTING ACTIVITIES
Purchase of investment securities....................................... (5,612,135,353)
Proceeds from sale/redemption of investment securities.................. 5,582,957,978
Return of capital on investments........................................ 1,957,814
Long-term capital gains dividends received.............................. 1,475,166
Amortization of premiums and discounts on debt securities............... 11,594,076
---------------
Net cash used in investing activities............................................... (14,150,319)
FINANCING ACTIVITIES
Dividends paid.......................................................... (169,558,911)
Proceeds from issuance of common stock under dividend reinvestment
plan.................................................................. 26,099,457
Change in net proceeds from issuance of commercial paper................ 1,019,501
---------------
Net cash used in financing activities............................................... (142,439,953)
-------------
Net increase in cash and cash equivalents................................................. 4,059,883
Cash and cash equivalents--beginning of year.............................................. 5,345,942
-------------
Cash and cash equivalents--end of year.................................................... $ 9,405,825
=============
Reconciliation of net investment income to net cash provided by operating
activities:
Net investment income................................................................... $ 159,624,172
Adjustments to reconcile net investment income to net cash provided by
operating activities:
Decrease in interest receivable....................................... 1,242,059
Decrease in dividends receivable...................................... 169,521
Decrease in accrued expenses.......................................... (422,019)
Decrease in other receivable.......................................... 36,422
---------------
Total adjustments............................................................... 1,025,983
-------------
Net cash provided by operating activities................................................. $ 160,650,155
=============

The accompanying notes are an integral part of the financial statements.

DNP SELECT INCOME FUND INC.
NOTES TO FINANCIAL STATEMENTS
December 31, 2003

(1) SIGNIFICANT ACCOUNTING POLICIES:

DNP SELECT INCOME FUND INC. (the "Fund") was incorporated under the laws of
the State of Maryland on November 26, 1986. The Fund commenced operations on
January 21, 1987, as a closed-end diversified management investment company
registered under the Investment Company Act of 1940. The primary investment
objectives of the Fund are current income and long-term growth of income.
Capital appreciation is a secondary objective.

The following are the significant accounting policies of the Fund:

(a) The market values for securities are determined as follows: Equity
securities traded on a national securities exchange or traded
over-the-counter and quoted on the NASDAQ System are valued at last sales
prices. Fixed income securities and any other securities for which it is
determined that market prices are unavailable or inappropriate are valued at
a fair value using a procedure determined in good faith by the Board of
Directors which includes the use of a pricing service. Each money market
instrument having a maturity of 60 days or less is valued on an amortized
cost basis, which approximates market value.

(b) No provision is made for Federal income taxes since the Fund has
elected to be taxed as a "regulated investment company" and has made such
distributions to its shareholders deemed necessary to be relieved of all
Federal income taxes under provisions of current Federal tax law. The Fund
intends to utilize provisions of Federal income tax laws which allow a
realized capital loss to be carried forward for eight years following the
year of loss and offset such losses against any future realized gains. At
December 31, 2003, the Fund had tax capital loss carry forwards of
$387,291,560 of which $49,518,674 will expire in 2007; $126,699,370 will
expire in 2010 and $211,073,516 will expire in 2011.

At December 31, 2003, on a tax basis, the Fund had undistributed net
investment income of $6,008,643; and based on a $2,712,873,413 tax cost of
investments, gross unrealized appreciation of $253,248,708 and gross
unrealized depreciation of $92,979,901. The difference between the book
basis and tax basis of distributable earnings are primarily a result of tax
deferral of wash sale losses, the accretion of market discount and
amortization of premiums.

(c) Security transactions are recorded on the trade date. Realized gains
or losses from sales of securities are determined on the specific identified
cost basis. Dividend income is recognized on the ex-dividend date. Interest
income and expense are recognized on the accrual basis. Discounts and
premiums on securities are amortized over the lives of the respective
securities for book purposes. Discounts and premiums are not amortized for
tax purposes.

(d) The preparation of financial statements in conformity with accounting
principles generally accepted in the United States requires management to
make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results could differ from those estimates.

DNP SELECT INCOME FUND INC.
NOTES TO FINANCIAL STATEMENTS (Continued)
December 31, 2003

(e) The Fund has adopted Statement of Financial Accounting Standards No.
150 ("FAS 150") "Accounting for Certain Financial Instruments with
Characteristics of both Liabilities and Equity" in 2003, which requires
mandatorily redeemable preferred stock to be reclassified as a liability on
the statement of assets and liabilities and the related dividends as an
expense on the statement of operations. (See Note 5) Prior year amounts have
not been restated. The adoption of FAS 150 had no impact on the net asset
value of the common stock of the Fund.

(2) MANAGEMENT ARRANGEMENTS:

The Fund has engaged Duff & Phelps Investment Management Co. (the "Adviser")
to provide professional investment management services for the Fund and has
engaged J. J. B. Hilliard, W. L. Lyons, Inc. (the "Administrator") to provide
administrative and management services for the Fund. The Adviser receives a
quarterly fee at an annual rate of .60% of the average weekly net assets of the
Fund up to $1.5 billion and .50% of average weekly net assets in excess
thereof. The Administrator receives a quarterly fee at annual rates of .25% of
average weekly net assets up to $100 million, .20% of average weekly net assets
from $100 million to $1 billion, and .10% of average weekly net assets over $1
billion. For purposes of the foregoing calculations, "average weekly net
assets" is defined as the sum of (i) the aggregate net asset value of the
Fund's common stock (ii) the aggregate liquidation preference of the Fund's
preferred stock and (iii) the aggregate proceeds to the Fund of commercial
paper issued by the Fund. Directors of the Fund not affiliated with the Adviser
receive a fee of $25,000 per year plus $2,000 per board meeting, plus $1,500
per committee meeting attended. Committee Chairmen receive an additional fee of
$5,000 per year. Total fees paid to directors for the year ended December 31,
2003 were $452,695.

(3) DIVIDENDS:

The Board of Directors has authorized the following distributions to common
stockholders from investment income in 2003:

Record Payable Dividend
Date Date Per Share
-------- -------- ---------

01-31-03 02-10-03 $.065
02-28-03 03-10-03 .065
03-31-03 04-10-03 .065
04-30-03 05-12-03 .065
05-30-03 06-10-03 .065
06-30-03 07-10-03 .065

Record Payable Dividend
Date Date Per Share
-------- -------- ---------

07-31-03 08-11-03 $.065
08-29-03 09-10-03 .065
09-30-03 10-10-03 .065
10-31-03 11-10-03 .065
11-28-03 12-10-03 .065
12-31-03 01-12-04 .080

The tax basis for all distributions was ordinary income.

DNP SELECT INCOME FUND INC.
NOTES TO FINANCIAL STATEMENTS (Continued)
December 31, 2003

(4) CAPITAL STOCK TRANSACTIONS:

The Fund may purchase shares of its own stock in open market or private
transactions, from time to time and in such amounts and at such prices (not
exceeding $100,000 plus accumulated and unpaid dividends in the case of the
Fund's remarketed preferred stock and less than net asset value in the case of
the Fund's common stock) as management may deem advisable. Since any such
purchases of the Fund's common stock would be made at prices below net asset
value, they would increase the net asset value per share of the remaining
shares of common stock outstanding. The Fund has not purchased any shares of
its common stock.

Transactions in common stock and paid-in surplus during 2003 and 2002 were
as follows:

Shares Amount
----------- --------------

For the year ended December 31, 2003:
Beginning capitalization.......... 216,169,515 $1,935,931,757
Dividend reinvestment............. 2,625,240 26,099,457
----------- --------------
Total capitalization.......... 218,794,755 $1,962,031,214
=========== ==============
For the year ended December 31, 2002:
Beginning capitalization.......... 213,521,241 $1,910,025,460
Dividend reinvestment............. 2,648,274 25,906,297
----------- --------------
Total capitalization.......... 216,169,515 $1,935,931,757
=========== ==============

(5) REMARKETED PREFERRED STOCK:

In 1988, the Fund issued 5,000 shares of Remarketed Preferred Stock ("RP")
in five series of 1,000 shares each at a public offering price of $100,000 per
share. The underwriting discount and other expenses incurred in connection with
the issuance of the RP were recorded as a reduction of paid-in surplus on
common stock. Dividends on the RP are cumulative at a rate which was initially
established for each series at its offering. Since the initial offering of each
series, the dividend rate on each series has been reset every 49 days by a
remarketing process. Dividend rates ranged from 0.939% to 1.430% during the
year ended December 31, 2003.

The RP is redeemable at the option of the Fund on any dividend payment date
at a redemption price equal to $100,000 per share, plus accumulated and unpaid
dividends. The Fund is required to maintain certain asset coverage with respect
to the RP, and the RP is subject to mandatory redemption if that asset coverage
is not maintained. Each series of RP is also subject to mandatory redemption on
a date certain as follows: Series A--November 28, 2012; Series B--November 18,
2015; Series C--November 7, 2018; Series D--December 22, 2021; and Series
E--December 11, 2024.

In general, the holders of the RP and of the Common Stock have equal voting
rights of one vote per share, except that the holders of the RP, as a class,
vote to elect two members of the Board of Directors, and separate class votes
are required on certain matters that affect the respective interests of the RP
and the Common Stock.

DNP SELECT INCOME FUND INC.
NOTES TO FINANCIAL STATEMENTS (Continued)
December 31, 2003

(6) COMMERCIAL PAPER:

The Board of Directors has authorized the Fund to issue up to $200,000,000
of Commercial Paper Notes (the "Notes") in minimum denominations of $100,000
with maturities up to 270 days. The Notes generally will be sold on a discount
basis, but may be sold on an interest-bearing basis. The Notes are not
redeemable by the Fund nor are they subject to voluntary prepayment prior to
maturity. The aggregate amount of Notes outstanding changes from time to time.
The Notes are unsecured, general obligations of the Fund. The Fund has entered
into a credit agreement to provide liquidity. The Fund is able to request loans
under the credit agreement of up to $100,000,000 at any one time, subject to
certain restrictions. Interest rates on the Notes ranged from 1.12% to 1.40%
during the year ended December 31, 2003. At December 31, 2003, the Fund had
Notes outstanding of $198,974,940.

(7) INVESTMENT TRANSACTIONS:

For the year ended December 31, 2003, purchases and sales of investment
securities (excluding short-term securities) were $5,432,737,853 and
$5,417,975,023, respectively.

The Fund may lend portfolio securities to a broker/dealer. Loans are
required to be secured at all times by collateral at least equal to the market
value of securities loaned. The Fund receives a portion of the income earned on
the securities held as collateral and continues to earn income on the loaned
securities. Security loans are subject to the risk of failure by the borrower
to return the loaned securities in which case the Fund could incur a loss. At
December 31, 2003, the Fund had loaned portfolio securities with a market value
of $420,347,640 to a broker/dealer and received $435,720,120 of cash
collateral. This cash was invested in securities as shown in the Schedule of
Investments.

DNP SELECT INCOME FUND INC.

FINANCIAL HIGHLIGHTS

The table below provides information about income and capital changes for a
share of common stock outstanding throughout the periods indicated:

For the year ended December 31
-----------------------------------------------------------
2003 2002 2001 2000 1999
---------- ---------- ---------- ---------- ----------

Net asset value:
Beginning of year........................... $ 7.37 $ 9.18 $ 10.51 $ 8.77 $ 10.36
---------- ---------- ---------- ---------- ----------
Net investment income (1).................... 0.75 0.79 0.77 0.88 0.89
Net realized gain (loss) and change in
unrealized appreciation/(depreciation) on
investments................................ 0.62 (1.78) (1.23) 1.76 (1.59)
Dividends on preferred stock from net
investment income (1)...................... -- (0.04) (0.08) (0.11) (0.10)
---------- ---------- ---------- ---------- ----------
Total from investment operations applicable
to common stock............................ 1.37 (1.03) (0.54) 2.53 (0.80)
Dividends on common stock from net
investment income.......................... (0.80) (0.78) (0.79) (0.79) (0.79)
---------- ---------- ---------- ---------- ----------
Net asset value:
End of year................................. $ 7.94 $ 7.37 $ 9.18 $ 10.51 $ 8.77
========== ========== ========== ========== ==========
Per share market value:
End of year................................. $ 10.96 $ 9.90 $ 11.06 $ 10.50 $ 8.31
Ratio of expenses to average net assets
applicable to common stock (1)............. 1.89% 1.44% 1.57% 1.79% 1.66%
Ratio of net investment income to average net
assets applicable to common stock (1)...... 9.88% 9.63% 8.63% 9.73% 9.40%
Total investment return on market value...... 19.82% (3.04%) 13.67% 37.37% (19.85%)
Portfolio turnover rate...................... 242.69% 197.27% 213.48% 229.70% 223.78%
Net assets applicable to common stock, end of
year (000s omitted)........................ $1,738,286 $1,592,970 $1,959,697 $2,216,014 $1,828,128

--------
(1)Upon the adoption of FAS 150 (See Note (e)) in 2003, dividends on preferred
stock are included in interest expense and are part of net investment
income. Absent this change in accounting, per share net investment income
and dividends on preferred stock from net investment income would have been
$.78 and $.03, respectively and the ratios of expenses and net investment
income to average net assets applicable to common stock would have been
1.51% and 10.25%, respectively.

Information about Directors and Officers of the Fund

Set forth below are the names and certain biographical information about the
directors and officers of the Fund. Directors are divided into three classes
and are elected to serve staggered three-year terms. Except as indicated in the
table, directors are elected by the holders of the Fund's common stock. The
officers are elected at the annual meeting of the board of directors of the
Fund.

Name, Position with the Fund,
Address Length of Time Served Principal Occupation During Past 5 Years
and Age and Term of Office and Other Affiliations
------- ----------------------- ----------------------------------------

Interested Director of the Fund

Claire V. Hansen*...... Chairman and Director Senior Advisor to the Board of Directors, Phoenix
55 East Monroe Street since January 1987 Investment Partners, Ltd. since November 1995;
Chicago, Illinois 60603 Current term expires 2005 President and Chief Executive Officer, DNP Select
Age 78 Income Fund Inc. January 2000-February 2001;
Senior Advisor to the Board of Directors, Duff &
Phelps Corporation, 1988-November 1995
(Chairman of the Board, 1987-1988; Chairman of the
Board and Chief Executive Officer prior thereto);
Chairman of the Board, Duff & Phelps Investment
Management Co., 1985-1987

Independent Directors of the Fund

Franklin A. Cole....... Director since January 1989 Chairman, Croesus Corporation (private management
54 West Hubbard Street Current term expires 2004 and investment company); formerly Chairman and
Chicago, Illinois 60610 Chief Executive Officer, Amerifin Corporation
Age 77 (formerly named Walter E. Heller International
Corporation)

Gordon B. Davidson..... Director since January 1989 Of Counsel, Wyatt, Tarrant & Combs (law firm)
PNC Plaza Current term expires 2004 since September 1995 (Chairman of the Executive
Louisville, Kentucky Committee prior thereto); retired Director, BellSouth
40202 Corp.; former Chairman of the Board and Director,
Age 77 Trans Financial Advisers, Inc.

Connie K. Duckworth.... Director since April 2002 Partner, Eight Wings Enterprises (investor in early-
77 Stone Gate Lane Current term expires 2005 stage businesses) since December 2001; Advisory
Lake Forest, Illinois Director, Goldman, Sachs & Company, December
60045 2000-December 2001 (Managing Director, December
Age 49 1996-December 2000, Partner 1990-1996, Chief
Operating Officer of Firmwide Diversity Committee
1990-1995); Member, Circle Financial Group LLC
(private investment company); Chair (2003),
Policyowners' Examining Committee, Northwestern
Mutual Life Insurance Company; Founder and
President, Arzu, Inc. (nonprofit corporation created
to raise awareness of Afghan women through sale of
homemade rugs)

Robert J. Genetski**..... Director since April 2001 President, Robert Genetski & Associates, Inc.
195 North Harbor Drive Current term expires 2004 (economic and financial consulting firm) since 1991;
Chicago, Illinois 60601 Senior Managing Director, Chicago Capital, Inc.
Age 61 (financial services firm) 1995-2001; former Senior
Vice President and Chief Economist, Harris Trust &
Savings Bank; author of several books; regular
contributor to the Nikkei Financial Daily

Francis E. Jeffries***... Director since January 1987 Retired Chairman, Phoenix Investment Partners, Ltd.
8477 Bay Colony Drive Current term expires 2004 since May 1997 (Chairman, November 1995-May
Naples, Florida 34108 1997); Chairman and Chief Executive Officer, Duff &
Age 73 Phelps Corporation, June 1993-November 1995
(President and Chief Executive Officer, January
1992-June 1993); Chairman of the Board, Duff &
Phelps Investment Management Co. 1988-1993;
Director, The Empire District Electric Company

Nancy Lampton**.......... Director since October 1994 Chairman and Chief Executive Officer, Hardscuffle
3 Riverfront Plaza Current term expires 2006 Inc. (insurance holding company) since January
471 West Main Street 2000; Chairman and Chief Executive Officer,
Louisville, Kentucky American Life and Accident Insurance Company of
40202 Kentucky since 1971; Director, Constellation Energy
Age 61 Group, Inc. (public utility holding company),
Advisor, Thorium Power Corporation (designer of
non-proliferative fuel for nuclear energy needs)

Christian H. Poindexter.. Director since May 2003 Retired Chairman and Chief Executive Officer,
1997 Annapolis Exchange Current term expires 2006 Constellation Energy Group, Inc. (public utility
Pkwy. holding company) (Executive Committee Chairman,
Annapolis, Maryland 21401 July 2002-March 2003; Chairman of the Board,
Age 65 April 1999-July 2002; Chief Executive Officer, April
1999-October 2001; President, April 1999-October
2000); Chairman, Baltimore Gas and Electric
Company, January 1993-July 2002 (Chief Executive
Officer, January 1993-July 2000; President, March
1998-October 2000; Director, 1988-2003); Director,
Mercantile Bankshares Corporation (bank holding
company); Director, The Baltimore Life Insurance
Company

Carl F. Pollard........ Director since April 2002 Owner, Hermitage Farm L.L.C. (Thoroughbred
10500 W. U.S. Hwy 42 Current term expires 2005 breeding) since January 1995; Chairman, Columbia
Goshen, Kentucky 40026 Healthcare Corporation 1993-1994; Chairman and
Age 65 Chief Executive Officer, Galen Health Care, Inc.
March-August 1993; President and Chief Operating
Officer, Humana Inc. 1991-1993 (previously Senior
Executive Vice President, Executive Vice President
and Chief Financial Officer); Chairman and Director,
Churchill Downs Incorporated; Director, Breeders'
Cup Limited

David J. Vitale........ Director since April 2000 Chief Administrative Officer, Chicago Public
125 South Clark Street Current term expires 2006 Schools since April 2003; Private investor November
16th Floor 2002-April 2003; President and Chief Executive
Chicago, Illinois 60603 Officer, Board of Trade of the City of Chicago, Inc.,
Age 57 March 2001-November 2002; Retired executive
1999-2001; Vice Chairman and Director, Bank One
Corporation, 1998-1999; Vice Chairman and
Director, First Chicago NBD Corporation, and
President, The First National Bank of Chicago,
1995-1998; Vice Chairman, First Chicago
Corporation and The First National Bank of Chicago,
1993-1998 (Director, 1992-1998; Executive Vice
President, 1986-1993); Director, Ariel Capital
Management, Inc., Ark Investment Management and
Wheels, Inc.

Officers of the Fund (other than the Chairman, for whom see above)

Nathan I. Partain...... President and Chief Executive Vice President, Duff & Phelps Investment
55 East Monroe Street Executive Officer, since Management Co. since January 1997; Director of
Chicago, Illinois 60603 February 2001 (Executive Utility Research, Phoenix Investment Partners, Ltd.,
Age 47 Vice President, Chief 1989-1996 (Director of Equity Research, 1993-1996
Investment Officer and and Director of Fixed Income Research, 1993);
Assistant Secretary, April Director, Otter Tail Corporation
1998-February 2001;
Senior Vice President, Chief
Investment Officer and
Assistant Secretary,
January-April 1998; Senior
Vice President and Assistant
Secretary, January 1997-
January 1998)

T. Brooks Beittel...... Secretary and Senior Vice Senior Vice President, Duff & Phelps Investment
55 East Monroe Street President, since January Management Co. since 1993 (Vice President 1987-
Chicago, Illinois 60603 1995; Treasurer, January 1993)
Age 53 1995-September 2002

Michael Schatt......... Senior Vice President since Senior Vice President, Duff & Phelps Investment
55 East Monroe Street April 1998 (Vice President, Management Co. since January 1997; Managing
Chicago, Illinois 60603 January 1997-April 1998) Director, Phoenix Investment Partners, Ltd., 1994-
Age 56 1996

Joseph C. Curry, Jr.... Treasurer since September Senior Vice President, J.J.B. Hilliard, W.L. Lyons,
Hilliard Lyons Center 2002; Vice President since Inc. since 1994 (Vice President 1982-1994); Vice
Louisville, Kentucky April 1988 President Hilliard Lyons Trust Company; President,
40202 Hilliard-Lyons Government Fund, Inc.; Vice
Age 59 President, Treasurer and Secretary, Hilliard Lyons
Growth Fund, Inc.; Treasurer, Senbanc Fund

Dianna P. Wengler...... Assistant Secretary since Vice President, J.J.B. Hilliard, W.L. Lyons, Inc. since
Hilliard Lyons Center April 1988 1990; Vice President, Hilliard-Lyons Government
Louisville, Kentucky Fund, Inc.; Assistant Secretary, Hilliard Lyons
40202 Growth Fund, Inc.
Age 43

--------
*Mr. Hansen is deemed to be an "interested person" of the Fund under the
Investment Company Act of 1940 (the "1940 Act") because of his positions
with the Fund and with Phoenix Investment Partners, Ltd., parent company of
the Fund's investment adviser.
**Elected by the holders of the Fund's preferred stock.
***Mr. Jeffries oversees 28 portfolios in the fund complex to which the Fund
belongs, which consists of all registered investment companies that have an
investment adviser that is an "affiliated person" (as defined in the 1940
Act) of the Fund's investment adviser.

-----------------

A description of the policies and procedures that the Fund uses to determine
how to vote proxies relating to portfolio securities is available without
charge, upon request by calling the Administrator toll-free at (888) 878-7845
or is available on the Fund's web site, dnpselectincome.com. This information
will also be available after April 30, 2004 on the SEC's web site, www.sec.gov.

Board of Directors

FRANKLIN A. COLE

GORDON B. DAVIDSON

CONNIE K. DUCKWORTH

ROBERT J. GENETSKI

CLAIRE V. HANSEN, CFA

FRANCIS E. JEFFRIES, CFA

NANCY LAMPTON

CHRISTIAN H. POINDEXTER

CARL F. POLLARD

DAVID J. VITALE

Officers

CLAIRE V. HANSEN, CFA
Chairman

NATHAN I. PARTAIN, CFA
President and
Chief Executive Officer

T. BROOKS BEITTEL, CFA
Senior Vice President
and Secretary

MICHAEL SCHATT
Senior Vice President

JOSEPH C. CURRY, JR.
Vice President and Treasurer

DIANNA P. WENGLER
Assistant Secretary

DNP Select
Income Fund Inc.

Common stock listed on the New York Stock Exchange under the symbol DNP

55 East Monroe Street
Chicago, Illinois 60603
(312) 368-5510

Shareholder inquiries please contact

Transfer Agent
Dividend Disbursing
Agent and Custodian

The Bank of New York
Shareholder Relations
Church Street Station
P.O. Box 11258
New York, New York 10286-1258
(877) 381-2537

Investment Adviser

Duff & Phelps
Investment Management Co.
55 East Monroe Street
Chicago, Illinois 60603

Administrator

J.J.B. Hilliard, W.L. Lyons, Inc.
Hilliard Lyons Center
Louisville, Kentucky 40202
(888) 878-7845

Legal Counsel

Mayer, Brown, Rowe & Maw LLP
190 South LaSalle Street
Chicago, Illinois 60603

Independent Auditors

Ernst & Young LLP
233 South Wacker Drive
Chicago, Illinois 60606

DNP Select
Income Fund Inc.

Annual Report

December 31, 2003

[GRAPHIC]

4th

ITEM 2. CODE OF ETHICS.

As of the end of the period covered by this report, the registrant has
adopted a Code of Business Conduct and Ethics that applies to the
registrant's principal executive officer and principal financial officer.
The registrant's principal financial officer also performs the functions of
principal accounting officer.

The text of the registrant's Code of Business Conduct and Ethics is
posted on the registrant's web site at www.dnpselectincome.com. In the
event that the registrant makes any amendment to or grants any waiver from
the provisions of its Code of Business Conduct and Ethics, the registrant
intends to disclose such amendment or waiver on its web site within five
business days.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The registrant's board of directors has determined that three members
of its audit committee, Christian H. Poindexter, Carl F. Pollard and David
J. Vitale, are audit committee financial experts and that each of them is
"independent" for purposes of this Item.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

The information required by this Item is incorporated by reference
from the section captioned "Audit and Non-Audit Fees" in the registrant's
definitive proxy statement filed within 120 days after the end of the
fiscal year covered by this report.

ITEM 5 AUDIT COMMITTEE OF LISTED REGISTRANTS.

The registrant has a separately-designated standing audit committee
established in accordance with Section 3(a)(58)(A) of the Securities
Exchange Act of 1934 (the "Exchange Act"). The members of the committee are
Connie K. Duckworth, Robert J. Genetski, Christian H. Poindexter, Carl F.
Pollard and David J. Vitale.

ITEM 6. [RESERVED]

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES
FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

PROXY VOTING POLICIES AND PROCEDURES
Adopted May 13, 2003

I. Definitions. As used in these Policies and Procedures, the following terms
shall have the meanings ascribed below:

A. "Adviser" refers to Duff & Phelps Investment Management Co. ("DPIM").

B. "corporate governance matters" refers to changes involving the
corporate ownership or structure of an issuer whose securities are
within a portfolio holding, including changes in the state of
incorporation, changes in capital structure, including increases and
decreases of capital and preferred stock issuance, mergers and other
corporate restructurings, and anti-takeover provisions such as
staggered boards, poison pills, and supermajority voting provisions.

C. "Delegate" refers to the Adviser, any proxy committee to which the
Adviser delegates its responsibilities hereunder and any qualified,
independent organization engaged by the Adviser to vote proxies on
behalf of the Fund.

D. "executive compensation matters" refers to stock option plans and
other executive compensation issues.

E. "Fund" refers to DNP Select Income Fund Inc.

F. "portfolio holding" refers to any company or entity whose securities
are held within the investment portfolio of the Fund as of the date a
proxy is solicited.

G. "proxy contests" refer to any meeting of shareholders of an issuer for
which there are at least two sets of proxy statements and proxy cards,
one solicited by management and the others by a dissident or group of
dissidents.

H. "social issues" refers to social, political and environmental issues.

I. "takeover" refers to "hostile" or "friendly" efforts to effect radical
change in the voting control of the board of directors of a company.

II. General policy. It is the intention of the Fund to exercise stock ownership
rights in portfolio holdings in a manner that is reasonably anticipated to
further the best economic interests of shareholders of the Fund.
Accordingly, the Fund or its Delegate(s) shall endeavor to analyze and vote
all proxies that are considered likely to have financial implications, and,
where appropriate, to participate in corporate governance, shareholder
proposals, management communications and legal proceedings. The Fund and
its Delegate(s) must also identify potential or actual conflicts of
interests in voting proxies and address any such conflict of interest in
accordance with these Policies and Procedures.

III. Factors to consider when voting.

A. The Delegate may abstain from voting when it concludes that the effect
on shareholders' economic interests or the value of the portfolio
holding is indeterminable or insignificant.

B. In analyzing anti-takeover measures, the Delegate shall vote on a
case-by-case basis taking into consideration such factors as overall
long-term financial performance of the target company relative to its
industry competition. Key measures which shall be considered include,
without limitation, five-year annual compound growth rates for sales,
operating income, net income, and total shareholder returns (share
price appreciation plus dividends). Other financial indicators that
will be considered include margin analysis, cash flow, and debt
levels.

C. In analyzing proxy contests for control, the Delegate shall vote on a
case-by-case basis taking into consideration such factors as long-term
financial performance of the target company relative to its industry;
management's track record; background to the proxy contest;
qualifications of director nominees (both slates); evaluation of what
each side is offering shareholders as well as the likelihood that the
proposed objectives and goals can be met; and stock ownership
positions.

D. In analyzing contested elections for director, the Delegate shall vote
on a case-by-case basis taking into consideration such factors as the
qualifications of all director nominees. The Delegate shall also
consider the independence and attendance record of board and key
committee members. A review of the corporate governance profile shall
be completed highlighting entrenchment devices that may reduce
accountability.

E. In analyzing corporate governance matters, the Delegate shall vote on
a case-by-case basis taking into consideration such factors as tax and
economic benefits associated with amending an issuer's state of
incorporation, dilution or improved accountability associated with
changes in capital structure, management proposals to require a
supermajority shareholder vote to amend charters and bylaws and
bundled or "conditioned" proxy proposals.

F. In analyzing executive compensation matters, the Delegate shall vote
on a case-by-case basis taking into consideration such factors as
executive pay and spending on perquisites, particularly in conjunction
with sub-par performance and employee layoffs.

G. The Delegate shall generally vote against shareholder proposals on
social issues, except where the Delegate determines that a different
position would be in the clear economic interests of the Fund and its
shareholders.

IV. Responsibilities of Delegates.

A. In voting proxies on behalf of the Fund, each Delegate shall have a
duty of care to safeguard the best interests of the Fund and its
shareholders and to act in accordance with these Policies and
Procedures.

B. The Adviser may delegate its responsibilities hereunder to a proxy
committee established from time to time by the Adviser and may engage
one or more qualified, independent organizations to vote proxies on
behalf of the Fund. The Adviser shall be responsible for the ensuring
that any such Delegate is informed of and complies with these Policies
and Procedures.

C. No Delegate shall accept direction or inappropriate influence from any
other client or third party, or from any director, officer or employee
of any affiliated company, and shall not cast any vote inconsistent
with these Policies and Procedures without obtaining the prior
approval of the Board of Directors of the Fund or its duly authorized
representative.

V. Conflicts of interest

A. The Fund and its Delegate(s) seek to avoid actual or perceived
conflicts of interest in the voting of proxies for portfolio holdings
between the interests of Fund shareholders, on the one hand, and those
of the Adviser or any affiliated person of the Fund or the Adviser, on
the other hand. The Board of Directors may take into account a wide
array of factors in determining whether such a conflict exists,
whether such conflict is material in nature, and how to properly
address or resolve the same.

B. While each conflict situation varies based on the particular facts
presented and the requirements of governing law, the Board of
Directors or its duly authorized representative may take the following
actions, among others, or otherwise give weight to the following
factors, in addressing material conflicts of interest in voting (or
directing Delegates to vote) proxies pertaining to portfolio holdings:
(i) vote pursuant to the recommendation of the proposing Delegate;
(ii) abstain from voting; or (iii) rely on the recommendations of an
established, independent third party with qualifications to vote
proxies, such as Institutional Shareholder Services.

C. The Adviser shall promptly notify the Board of Directors of the Fund
promptly after becoming aware that any actual or potential conflict of
interest exists and shall seek the Board of Directors' recommendations
for protecting the best interests of Fund's shareholders. The Adviser
shall not waive any conflict of interest or vote any conflicted

proxies without the prior written approval of the Board of Directors
or its duly authorized representative.

VI. Miscellaneous.

A. A copy of the current Proxy Voting Policies and Procedures and the
voting records for the Fund, reconciling proxies with portfolio
holdings and recording proxy voting guideline compliance and
justification, shall be kept in an easily accessible place and
available for inspection either physically or through electronic
posting on an approved website.

B. In the event that a determination, authorization or waiver under these
Policies and Procedures is requested at a time other than a regularly
scheduled meeting of the Board of Directors, the Chairman of the Audit
Committee shall be the duly authorized representative of the Board of
Directors with the authority and responsibility to interpret and apply
these Policies and Procedures and shall provide a report of his or her
determinations at the next following meeting of the Board of
Directors.

C. The Adviser shall present a report of any material deviations from
this Statement of Policy at every regularly scheduled meeting of the
Board of Directors and shall provide such other reports as the Board
of Directors may request from time to time. The Adviser shall provide
to the Fund or any shareholder a record of its effectuation of proxy
voting pursuant to this Statement of Policy at such times and in such
format or medium as the Fund shall reasonably request. The Adviser
shall be solely responsible for complying with the disclosure and
reporting requirements under applicable laws and regulations,
including, without limitation, Rule 206(4)-6 under the Investment
Advisers Act of 1940. The Adviser shall gather, collate and present
information relating to the its proxy voting activities of those of
each Delegate in such format and medium as the Fund shall determine
from time to time in order for the Fund to discharge its disclosure
and reporting obligations pursuant to Rule 30b1-4 under the Investment
Company Act of 1940, as amended.

D. The Adviser shall pay all costs associated with proxy voting for
portfolio holdings pursuant to these Policies and Procedures and
assisting the Fund in providing public notice of the manner in which
such proxies were voted.

E. In performing its duties hereunder, any Delegate may engage the
services of a research and/or voting adviser, the cost of which shall
be borne by such Delegate.

F. These Policies and Procedures shall be presented to the Board of
Directors annually for their amendment and/or approval.

ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.

Not applicable to annual reports for the period ended December 31,
2003.

ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

Not applicable to annual reports for the period ended December 31,
2003.

ITEM 10 CONTROLS AND PROCEDURES.

(a) The registrant's principal executive officer and principal
financial officer have concluded that the registrant's disclosure controls
and procedures (as defined in Rule 30a-3(c) under the Investment Company
Act of 1940 (the "1940 Act")) are effective, based on an evaluation of
those controls and procedures made as of a date within 90 days of the
filing date of this report as required by Rule 30a-3(b) under the 1940 Act
and Rule 13a-15(b) under the Exchange Act.

(b) There has been no change in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act that
occurred during the registrant's second fiscal half-year that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.

ITEM 11. EXHIBITS.

(a) Exhibit 99.CERT Certifications pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002

(b) Exhibit 99.906CERT Certifications pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) DNP SELECT INCOME FUND INC.

By (Signature and Title)* /s/ Nathan I. Partain
----------------------------
Nathan I. Partain
President and Chief Executive Officer

Date February 27, 2004

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.

By (Signature and Title)* /s/ Nathan I. Partain
----------------------------
Nathan I. Partain
President and Chief Executive Officer

Date February 27, 2004

By (Signature and Title)* /s/ Joseph C. Curry, Jr.
----------------------------
Joseph C. Curry
Vice President and Treasurer

Date February 27, 2004

* Print the name and title of each signing officer under his or her signature.