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

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number   811-4915  

DNP Select Income Fund Inc.

(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: September 30, 2008

     Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

     A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q 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. § 3507.

 

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ITEM 1.

SCHEDULE OF INVESTMENTS.

The Schedule of Investments follows.

 

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	DNP Select Income Fund Inc.
	Third Quarter Report September 30, 2008

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October 29, 2008

Dear Fellow Shareholders:

     Performance Review: Consistent with its primary objective of current income, the Fund declared three monthly distributions of 6.5 cents per share of common stock during the third quarter of 2008. The 6.5 cent per share monthly distribution rate, without compounding, would be 78 cents annualized, or an 8.33% yield based on the September 30, 2008 closing price of $9.36 per share. That yield compares favorably with the quarter-end yields of 4.40% on the Dow Jones Utility Index and 4.55% on the S&P Utilities Index. Please refer to the portion of this letter captioned “Board of Directors Meetings” for important information about the Fund’s distributions.

     Your Fund had a total return (income plus change in market price) of –8.5% for the quarter ended September 30, 2008, above the –14.4% return of the composite of the S&P Utilities Index and the Lehman Utility Bond Index, reflecting the stock and bond ratio of the Fund. In comparison, the S&P Utilities Index, a stock-only index, had a total return of –18.0% . Year-to-date through September 30, your Fund had a total return of –6.5%, greater than the –16.1% return of the composite and the –20.3% return of the S&P Utilities Index.

     On a longer-term basis, as of September 30, 2008, your Fund had a five-year cumulative total return of 29.4%, below that of the 62.6% return of the composite of the S&P Utilities Index and the Lehman Utility Bond Index, reflecting the stock and bond ratio of the Fund. In comparison, the S&P Utilities Index had a total return during that period of 80.5% .

     We have mentioned on several occasions that the S&P Utilities Index includes energy merchants. Energy merchants are companies that generate, transmit, purchase and resell electricity as a commodity in the unregulated wholesale market and consequently benefit from higher commodity prices. For a long period of time, commodity exposure had been beneficial to the merchants. Recently, commodity exposure has been detrimental. Extreme volatility in natural gas prices has hurt the margins for many of these companies.Your Fund generally does not invest in energy merchants because of their typically higher risk profiles.

     The table below compares the performance of your Fund to various market benchmarks. The composite and index returns do not include any fees or expenses.

	Cumulative Total Return*
For the period indicated through September 30, 2008	DNP Select Income Fund Inc.				Composite Index		S&P Utilities Index		Lehman Utility Bond Index
	Market		NAV
One year	(6.9	)%	(14.9	)%	(10.8	)%	(14.3	)%	(1.0	)%
Five years	29.4	%	10.0	%	62.6	%	80.5	%	16.1	%

*

Total return includes dividends reinvested in the Fund or index, as applicable. The Composite Index is a composite of the returns of the S&P Utilities Index and the Lehman Brothers Utility Bond Index, weighted to reflect the stock and bond ratio of the Fund. Performance returns for the S&P Utilities Index and Lehman Brothers Utility Bond Index were obtained from Bloomberg LLP. Fund returns were obtained from the Administrator of the Fund. Past performance is not indicative of future results.

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     Don’t Panic: In our last letter to you we wrote about an economist by the name of Hyman Minsky. Minsky’s theory holds that periods of economic and financial stability lead to a lowering of investor risk aversion and acceptance of increasingly higher levels of debt relative to income and net worth – commonly referred to as leverage. Higher levels of leverage increase consumption and push asset prices ever higher. At some point the sheer burden of debt leverage or some external event leads to what has been called a “Minsky Moment” – the beginning of the process of deleveraging, asset liquidation, economic downturn, and financial crisis.

     Unfortunately, Minsky’s hypothesis is being validated. Economic growth has slowed as individuals try to balance their overextended housing-related budgets, and financial institutions guard their capital and make fewer commitments after taking large write downs on their housing- related investments. At the outset of the crisis about a year ago, some believed that the downturn was uniquely American. It quickly became clear, however, that financial excess and its painful wind-down consequences were global in scope.

     Global real and financial markets – from housing to common stocks – are experiencing tremendous sales pressure as companies, mutual and hedge funds, and individuals sell assets to meet liquidity demands. Economic units that can’t sell assets fast enough, or at prices near cost, are at risk of becoming insolvent or bankrupt. That puts further pressure on markets. For example, The Wall Street Journal estimates that the failure of Lehman Brothers, a major Wall Street investment bank, resulted in approximately $700 billion in assets needing to be liquidated. Further, individual investors, fearing for their future financial health, have been withdrawing money from mutual and hedge funds at a rapid rate. Hedge funds alone are estimated to have liquidated approximately $1 trillion in face value of investments this year due to investor withdrawals and the inability to obtain debt financing.

     History may refer to the current period as the “Panic of 2008”. In panics, the connection between fundamental value and market value is broken. A cycle of asset sales and lower prices continues until those who must sell, or feel they must sell, are finished selling. In the past, the forced selling reached a crescendo, often with many individual investors abandoning the markets. In hindsight, crescendos often mark the end of a panic, and those that sell into panics historically have not fully benefited from the return of investments to fundamental value.

     Deleveraging has been going on for some time now, but the eventual effects on the economy are uncertain. Unfortunately, it is clear that economic growth and employment are suffering. Initially, government response to the crisis appeared tentative and uncoordinated. More recently, the magnitude and focus of actions has improved, as the Federal Reserve, the Department of the Treasury, and the United States Congress have begun to appreciate the magnitude of the crisis and have become fully engaged in finding a solution.

     On October 3, Congress passed the Emergency Economic Stabilization Act of 2008. The Act gives virtually unlimited authority to the Secretary of the Treasury to purchase or insure any asset that it feels would contribute to the stability of the financial system. The Treasury also has the authority to inject capital directly into any financial institution. The Act also contains provisions to slow home foreclosures and encourage refinancings, and increases Federal deposit insurance from $100,000 to $250,000. Similar government responses are taking place around the globe. Although it will take time for these measures to be implemented and for the beneficial effects to be felt, the unprecedented scope is likely to bring stability to the markets and economy over time.

     Your Fund invests mostly in industries which have been classified as essential services – power generation and supply, and telecommunications. Nonetheless, the performance section above shows that the utility sectors and your Fund have not been immune to the selling pressure in the stock and bond markets. Nor are the utility sectors totally immune from the effect on earnings and profits of a slowing economy. However, regulated gas and electric companies have strong underlying credit fundamentals and Fund management believes they should be able to meet

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their financing needs despite the unsettled capital markets. Some power companies have returned to issuing traditional first mortgage bonds on plant and equipment rather than debentures as a way of raising funds. To-date, both the telecommunication and the electric and gas sectors of the utility industry have demonstrated relative financial stability in this time of uncertainty, and your Fund managers believe that utilities are a good place to weather the current storm.

     Board of Directors Meeting: At the regular Board of Directors meeting in August 2008, the Board declared the September, October, and November dividends. As is customary, the Board intends to declare the December, January and February dividends in mid-December.

     At the meeting the directors received an update from the Fund’s management and legal counsel on recent developments affecting the Fund’s remarketed and auction preferred stock. Management reported to the Board that the auction and remarketing failures that began in February 2008 have continued. An auction fails when there are insufficient clearing bids to purchase all the shares that current holders wish to sell. The failures are a result of the general quality and liquidity concerns in the credit markets, not any problems with the creditworthiness of the Fund or its preferred shares.

     The Board took note of the recent announcements by the SEC’s Division of Enforcement that settlements had been reached with major broker-dealers that had marketed auction rate securities (ARS) to their customers. The terms of the settlements include an undertaking by the broker-dealers to purchase ARS at full face value from customers. The Fund’s management believes that most holders of the Fund’s preferred stock are customers of these major broker-dealers, and that additional broker-dealers are likely to announce similar undertakings in the future.

     The Board views the steps that broker-dealers are taking to provide liquidity to their customers who are holders of ARS as a positive development. Although it appears that these steps likely will lead to a resolution of the illiquidity that the Fund’s preferred shareholders have experienced since February of this year, the Board and management of the Fund are continuing to monitor developments affecting the liquidity of the Fund’s preferred stock.

     Special Board of Directors Meeting: On October 27, 2008 a special Board of Directors meeting was held to review the recent extreme volatility and price declines in the stock and bond markets. As the markets have moved lower, so has the value of investments owned by the Fund. Under the Investment Company Act of 1940 (the “1940 Act”), in order to declare dividends on its common stock, the Fund must maintain its net asset value in relation to its preferred stock leverage at a ratio of at least two to one. While the Fund’s net asset value is currently in excess of this requirement, management is closely monitoring this ratio, and the Executive Committee of the Board is authorized to take action between Board meetings to reduce the amount of preferred stock outstanding if deemed necessary to meet the requirement of the 1940 Act.

     About Your Fund’s Adviser: Since 1995, the Fund’s investment adviser, Duff & Phelps Investment Management Co., has been a subsidiary of Phoenix Investment Partners, Ltd. (PXP). On February 7, 2008, PXP’s parent company, The Phoenix Companies, Inc., announced its intention to spin off PXP to its shareholders during 2008. On October 1, 2008, PXP changed its name to Virtus Investment Partners, Inc. in anticipation of the spin-off.

     About Your Fund’s Distribution Policy: At the February 2008 Board of Directors meeting, the Board reaffirmed the current 6.5 cent per share monthly distribution rate and formalized the monthly distribution process by adopting a Managed Distribution Plan (MDP). The Board reviews the operation of the MDP on a quarterly basis,

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with the most recent review having been conducted in August 2008. The MDP is described in a Question and Answer format on your Fund’s web site: http://www.dnpselectincome.com.

     Since 2004, the Fund has made increased use of realized gains offset by tax loss carryforwards to supplement its investment income. Until the Fund utilizes all of its tax loss carryforwards, distributions to shareholders derived from realized gains will be treated as ordinary income for tax purposes under the Internal Revenue Code (IRC). The treatment of the Fund’s realized gains as ordinary income for tax purposes has enabled the Fund to maintain its current monthly “income only” distribution rate. The Fund has exhausted its tax loss carryfoward in 2008. In the absence of tax loss carryforwards, distributions from realized gains would be treated as taxable gains rather than ordinary income.

     The 1940 Act and related SEC rules generally prohibit investment companies from distributing long-term capital gains, as defined by the IRC, more often than once in a twelve-month period. However, on August 26, 2008, the SEC granted the Fund’s request for exemptive relief, and the Fund is now permitted, subject to certain conditions, to make periodic distributions of long-term capital gains as frequently as twelve times a year, in connection with the Fund’s MDP.

     Even with the granting of exemptive relief from the SEC, a return of capital could occur if the Fund were to distribute more than its income and net realized capital gains. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you but does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income.” Any return of capital would not be taxable to shareholders in the year it is paid. Rather, shareholders would be required to reduce the cost basis of their shares by the amount of the return of capital so that, when the shares are ultimately sold, they will have properly accounted for the return of capital.

     Automatic Dividend Reinvestment Plan and Direct Deposit Service—The Fund has a dividend reinvestment plan (DRP) available as a benefit to all registered shareholders and also offers direct deposit service through electronic funds transfer to all registered shareholders currently receiving a monthly distribution check. These services are offered through BNY Mellon Shareowner Services. For more information and/or an authorization form on automatic dividend reinvestment or direct deposit, please contact BNY Mellon Shareowner Services (1-877-381-2537 or http://stock.bankofny.com). Information on these services is also available on the Fund’s website at the address noted below.

     Visit us on the Web—You can obtain the most recent shareholder financial reports and distribution information at our website, 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.

Francis E. Jeffries, CFA	Nathan I. Partain, CFA
Chairman of the Board	Director, President, and Chief Executive Officer

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DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS
(UNAUDITED)
September 30, 2008

COMMON STOCKS—104.9%
Shares		Description	Value (Note 1)
		n ELECTRIC AND GAS—78.6%
1,000,000		Alliant Energy Corp.	$    32,210,000
600,000		American Electric Power Inc.	22,218,000
1,000,000		Atmos Energy Corp.	26,620,000
3,071,300		CenterPoint Energy Inc.	44,748,841
1,400,000		Dominion Resources, Inc.	59,892,000
3,530,000		Duke Energy Corp.	61,527,900
1,264,000		Exelon Corp.	79,151,680
1,535,000		FPL Group Inc.	77,210,500
1,185,000		FirstEnergy Corp.	79,383,150
500,000		Great Plains Energy Inc.	11,110,000
188,673		National Grid PLC ADR (United Kingdom)	12,116,580
675,714		National Grid PLC (United Kingdom)	8,599,598
800,000		Nicor Inc.	35,480,000
1,000,000		Northeast Utilities Inc.	25,650,000
800,000		Northwest Natural Gas Co.	41,600,000
2,237,200		NSTAR	74,946,200
1,350,000		PG&E Corp.	50,557,500
2,000,000		Pepco Holdings Inc.	45,820,000
1,500,000		Pinnacle West Capital Corp.	51,615,000
1,375,000		Progress Energy Inc.	59,303,750
1,800,000		Public Service Enterprise Group Inc.	59,022,000
500,000		Red Electrica de Espana, S.A. (Spain)	25,178,355
1,000,000		Scottish & Southern Energy ADR (United Kingdom)	25,435,400
850,000		Scottish & Southern Energy PLC (United Kingdom)	21,620,210
1,000,000		Sempra Energy	50,470,000
2,000,000		Southern Co.	75,380,000
1,015,000		Spectra Energy Corp.	24,157,000
2,200,000		Teco Energy Inc.	34,606,000
1,000,000		TransCanada Corp.	36,150,000
1,500,000		Vectren Corp.	41,775,000
1,000,000		WGL Holdings Inc.	32,450,000
1,000,000		Westar Energy Inc.	23,040,000
3,499,304		Xcel Energy Inc.	69,951,087
			1,418,995,751

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DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS—(Continued)
(UNAUDITED)
September 30, 2008

Shares		Description	Value (Note 1)
		n TELECOMMUNICATION—20.2%
2,376,410		AT&T Inc.	$  66,349,367
1,377,000		Chunghwa Telecom Co. Ltd. ADR (Taiwan)	32,593,590
1,000,000		France Telecom SA (France)	27,812,075
3,000,000		Frontier Communications Corp.	34,500,000
1,612,900		Koninklijke KPN NV (Netherlands)	23,090,591
839,150		Telefonica, S.A. (Spain)	19,790,579
757,900		Telus Corp. (Canada)	27,708,402
2,284,600		Verizon Communications Inc.	73,312,814
1,121,640		Vodafone Group PLC ADR (United Kingdom)	24,788,244
3,128,360		Windstream Corp.	34,224,258
			364,169,920
		n NON-UTILITY—6.1%
23,314		AMB Property Corp.	1,056,124
41,923		Alexandria Real Estate Equities Inc.	4,716,338
37,102		AvalonBay Communities Inc.	3,651,579
47,229		BRE Properties, Inc.	2,314,221
47,411		Boston Properties Inc.	4,440,514
77,866		Corporate Office Properties Trust	3,141,893
79,471		Developers Diversified Realty Corp.	2,518,436
91,969		Diamondrock Hospitality Co.	836,918
124,187		Digital Realty Trust Inc.	5,867,836
91,398		Douglas Emmett Inc.	2,108,552
34,576		Entertainment Properties Trust	1,891,999
94,844		Equity Residential	4,212,022
30,507		Essex Property Trust Inc.	3,609,893
138,706		Extra Space Storage Inc.	2,130,524
43,120		Federal Realty Investment Trust	3,691,072
150,320		General Growth Properties Inc.	2,269,832
139,433		Health Care Property Investors Inc.	5,595,446
93,032		Health Care REIT Inc.	4,952,093
225,455		Host Hotels & Resorts Inc.	2,996,297
81,994		Kimco Realty Corp.	3,028,858
15,182		LaSalle Hotel Properties	354,044
84,575		The Macerich Co.	5,383,199
19,340		Nationwide Health Properties, Inc.	695,853

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

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DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS—(Continued)
(UNAUDITED)
September 30, 2008

Shares		Description	Value (Note 1)
19,566		Plum Creek Timber Co., Inc.	$         975,561
89,389		ProLogis	3,689,084
43,333		Public Storage Inc.	4,290,400
19,729		Regency Centers Corp.	1,315,727
26,544		SL Green Realty Corp.	1,720,051
99,768		Simon Property Group Inc.	9,677,496
22,298		Sunstone Hotel Investors Inc.	301,023
71,321		Tanger Factory Outlet Centers, Inc.	3,123,147
99,812		UDR, Inc.	2,610,084
101,216		Ventas Inc.	5,002,095
62,710		Vornado Realty Trust	5,703,475
			109,871,686
		Total Common Stocks (Cost—$1,722,503,102)	1,893,037,357

PREFERRED STOCKS—8.4%
		n UTILITY—3.2%
700,000		Entergy Corp. 75/8% due 2/17/09	36,400,000
220,000		Southern California Edison 61/8% Perpetual	21,037,500
			57,437,500
		n NON-UTILITY—5.2%
710,432		AMB Property Corp. 7% Series O Perpetual	13,071,949
650,000		Duke Realty Corp. 6.95% Series M Perpetual	10,660,000
800,000		Federal National Mortgage Association 81/4% Series S Perpetual	1,744,000
300,000		Federal National Mortgage Association 7% Series O Perpetual	815,640
605,000		Kimco Realty Corp. 73/4% Series G Perpetual	12,348,050
900,000		Public Storage Inc. 71/4% Series I Perpetual	17,442,000
600,000		Realty Income Corp. 73/8% Series D Perpetual	12,708,000
660,000		UDR, Inc. 63/4% Series G Perpetual	12,144,000
200,000		Vornado Realty Trust 7% Series E Perpetual	3,540,000
234,900		Vornado Realty Trust 65/8% Series G Perpetual	3,875,850
350,000		Vornado Realty Trust 65/8% Series I Perpetual	5,775,000
			94,124,489
		Total Preferred Stocks (Cost—$216,198,842)	151,561,989

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

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DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS—(Continued)
(UNAUDITED)
September 30, 2008

BONDS—35.2%
Par Value		Description	Ratings		Value (Note 1)
			Moody’s	Standard and Poor’s
		n ELECTRIC AND GAS—14.4%
$ 10,000,000		AGL Capital Corp.
		71/8%, due 1/14/11	Baa1	BBB+	$10,409,100
22,000,000		Arizona Public Service Company
		67/8%, due 8/01/36	Baa2	BBB-	18,668,452
24,000,000		Dominion Resources Capital Trust I
		7.83%, due 12/01/27	Baa3	BBB	24,012,600
25,000,000		Duke Capital Corp.
		71/2%, due 10/01/09	Baa1	BBB	25,263,850
20,000,000		Duke Energy Corp., Series D
		73/8%, due 3/01/10	A3	A-	20,793,400
5,000,000		Entergy Louisiana LLC
		6.30%, due 9/01/35	Baa1	A-	4,322,510
10,000,000		FPL Group Capital Inc.
		73/8%, due 6/01/09	A2	A-	10,248,400
5,000,000		FirstEnergy Corp.
		73/8%, due 11/15/31	Baa3	BBB-	4,661,045
24,340,000		Illinois Power Co.
		71/2%, due 6/15/09	Baa3	BBB	24,640,355
21,000,000		Keyspan Corp.
		75/8%, due 11/15/10	Baa1	A-	22,088,640
10,000,000		Northern Border Partners LP
		87/8%, due 6/15/10	Baa2	BBB	10,621,300
11,350,000		NSTAR
		8%, due 2/15/10	A2	A	11,899,340
9,101,000		PSEG Power LLC
		73/4%, due 4/15/11	Baa1	BBB	9,448,021
9,000,000		PSEG Power LLC
		85/8%, due 4/15/31	Baa1	BBB	9,758,520
25,000,000		Reliant Energy Resources Corp.
		73/4%, due 2/15/11	Baa3	BBB	25,699,250

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

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DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS—(Continued)
(UNAUDITED)
September 30, 2008

Par Value		Description	Ratings		Value (Note 1)
			Moody’s	Standard and Poor’s
$ 12,915,000		Sempra Energy
		7.95%, due 3/01/10	Baa1	BBB+	$   13,318,723
6,488,000		Southern Union Co.
		7.60%, due 2/01/24	Baa3	BBB-	5,631,675
8,850,000		Southern Union Co.
		81/4%, due 11/15/29	Baa3	BBB-	8,016,162
					259,501,343
		n TELECOMMUNICATION—18.8%
8,000,000		AT&T Wireless Services Inc.
		81/8%, due 5/01/12	A2	A	8,539,280
11,500,000		Alltel Corp.
		77/8%, due 7/01/32	Caa1	B-	11,471,250
15,098,000		BellSouth Capital Funding Corp.
		73/4%, due 2/15/10	A2	A	15,576,154
10,000,000		BellSouth Capital Funding Corp.
		77/8%, due 2/15/30	A2	A	9,650,900
22,000,000		British Telecom PLC (United Kingdom)
		83/8%, due 12/15/10	Baa1	BBB+	23,004,960
15,000,000		Centurytel Inc.
		83/8%, due 10/15/10	Baa2	BBB-	15,395,700
15,000,000		Centurytel Inc.
		67/8%, due 1/15/28	Baa2	BBB-	11,793,600
8,900,000		Comcast Corp.
		7.05%, due 3/15/33	Baa2	BBB+	8,003,957
18,000,000		Deutsche Telekom Int’l Finance B (Germany)
		81/2%, due 6/15/10	Baa1	BBB+	18,692,820
23,140,000		France Telecom SA (France)
		73/4%, due 3/01/11	A3	A-	24,298,620
17,000,000		Koninklijke KPN NV (Netherlands)
		8%, due 10/01/10	Baa2	BBB+	17,822,120
15,000,000		Koninklijke KPN NV (Netherlands)
		83/8%, due 10/01/30	Baa2	BBB+	16,110,255
24,104,000		Nextel Communications Corp.
		73/8%, due 8/01/15	Baa3	BB	15,917,655
10,000,000		Sprint Capital Corp.
		83/8%, due 3/15/12	Baa3	BB	9,006,460

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

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DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS—(Continued)
(UNAUDITED)
September 30, 2008

Par Value		Description	Ratings		Value (Note 1)
			Moody’s	Standard and Poor’s
$ 10,000,000		TCI Communications Inc.
		83/4%, due 8/01/15	Baa2	BBB+	$  10,633,820
5,000,000		TCI Communications Inc.
		71/8%, due 2/15/28	Baa2	BBB+	4,493,175
5,500,000		Tele-Communications Inc.
		77/8%, due 8/01/13	Baa2	BBB+	5,721,122
32,000,000		Telecom Italia Capital (Italy)
		7.20%, due 7/18/36	Baa2	BBB	25,285,760
15,000,000		Telefonica Emisiones SAU (Spain)
		7.045%, due 6/20/36	Baa1	BBB+	13,605,600
11,500,000		Telefonica Europe BV (Spain)
		73/4%, due 9/15/10	Baa1	BBB+	11,746,330
5,000,000		Telefonica Europe BV (Spain)
		81/4%, due 9/15/30	Baa1	BBB+	5,038,600
17,000,000		Telus Corp. (Canada)
		8%, due 6/01/11	Baa1	BBB+	18,014,900
15,500,000		Verizon Global Funding Corp.
		73/4%, due 12/01/30	A3	A	14,680,003
20,000,000		Vodafone Group PLC (United Kingdom)
		73/4%, due 2/15/10	Baa1	A-	20,620,200
5,000,000		Vodafone Group PLC (United Kingdom)
		77/8%, due 2/15/30	Baa1	A-	4,849,850
					339,973,091
		n NON-UTILITY—2.0%
14,790,000		CPG Partners LP
		81/4%, due 2/01/11	A3	A-	15,383,064
8,000,000		Dayton Hudson Corp.
		97/8%, due 7/01/20	A2	A+	10,261,720
9,600,000		Duke Realty LP
		6.80%, due 2/12/09	Baa1	BBB+	9,590,179
					35,234,963
		n U.S. GOVERNMENT SPONSORED ENTERPRISES—5.0%
90,000,000		Federal Home Loan Banks
		71/8%, due 1/15/10	Aaa	AAA	91,096,110
					91,096,110
		Total Bonds (Cost—$796,798,605)			725,805,507

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

10

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DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS—(Continued)
(UNAUDITED)
September 30, 2008

SHORT-TERM INSTRUMENTS—12.1%

Par Value/				Value
Shares			Description	(Note 1)
#$	56,133,000		Banc of America Securities LLC Repurchase Agreement,
			7.07%, dated 9/30/08, due 10/01/08, with a repurchase price of
			$56,144,024 and collateralized by $58,939,650 market value of
			corporate bonds having an average coupon rate of 6.36% and
			an original weighted average maturity of 8/08/25	$  56,133,000
#	17,000,000		Bank of Nova Scotia (Houston, Texas, USA) Certificate of Deposit
			2.448%, due 1/05/09	16,989,392
#	25,000,000		BNP Paribas Securities Corp. Repurchase Agreement,
			7.10%, dated 9/30/08, due 10/01/08, with a repurchase price of
			$25,004,931 and collateralized by $26,250,001 market value of
			corporate bonds having an average coupon rate of 7.08% and
			an original weighted average maturity of 12/29/11	25,000,000
#	570,150		BlackRock Liquidity Funds TempFund Portfolio
			2.672%, due 10/01/08	570,150
#	100,000,000		Deutsche Bank Securities Inc. Repurchase Agreement,
			7%, dated 9/30/08, due 10/01/08, with a repurchase price of
			$100,019,444 and collateralized by $102,000,042 market value of
			U.S. Treasury STRIPs having an average yield to maturity of 4.64%
			and an original weighted average maturity of 11/15/27	100,000,000
#	425,205		Goldman Sachs Financial Square Funds — Government Fund
			1.967%, due 10/01/08	425,205
#	20,000,000		Merrill Lynch Pierce Fenner & Smith Inc. Repurchase Agreement,
			7%, dated 9/30/08, due 10/01/08, with a repurchase price of
			$20,003,889 and collateralized by $21,000,545 market value of
			corporate bonds having an average coupon rate of 6.35% and
			an original weighted average maturity of 7/03/60	20,000,000
			Total Short-Term Instruments (Cost—$219,093,747)	219,117,747
			TOTAL INVESTMENTS—165.6% (Cost—$2,954,594,296)	2,989,522,600
			OTHER ASSETS LESS LIABILITIES—(37.9%)	(684,495,864	)
			AUCTION PREFERRED STOCK—(27.7%)	(500,000,000	)
			NET ASSETS APPLICABLE TO COMMON STOCK—100.0%	$ 1,805,026,736

# This security was purchased with the cash proceeds 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.

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

11

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DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS—(Continued)
(UNAUDITED)
September 30, 2008

     (1) Equity securities traded on a national or foreign securities exchange or traded over-the-counter and quoted on the NASDAQ System are valued at the last reported sale price or, if there was no sale on the pricing date, then the security is valued at the mean of the bid and ask prices as obtained on that day from one or more dealers regularly making a market in that security. Fixed income securities are valued at the mean of bid and ask prices provided by an independent pricing service when such prices are believed to reflect the fair market value of such securities. Such bid and ask prices are determined taking into account securities prices, yields, maturities, call features, ratings, and institutional size trading in similar securities and developments related to specific securities. Any 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. Short-term instruments having a maturity of 60 days or less are valued on an amortized cost basis, which approximates market value.

     The Fund implemented Financial Accounting Standards Board Statement of of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157”), effective January 1, 2008. In accordance with FAS 157, fair value is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. FAS 157 establishes a three-tier hierarchy to classify fair value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

     Level 1 — quoted prices in active markets for identical securities

     Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment spreads, credit risks, etc.)

     Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining fair value of investments)

     The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. The following is a summary of the inputs used to value each of the Fund’s investments as of September 30, 2008.

	Level 1 —	$2,045,594,701
	Level 2 —	943,927,899
	Total —	$2,989,522,600

     (2) At December 31, 2007, the Fund’s most recent fiscal tax year end, based on a tax cost of investments of $3,281,874,899, the Fund had gross unrealized appreciation of $655,947,619 and gross unrealized depreciation of $40,668,062.

12

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Board of Directors FRANCIS E. JEFFRIES, CFA Chairman NANCY LAMPTON Vice Chairman STEWART E. CONNER CONNIE K. DUCKWORTH ROBERT J. GENETSKI EILEEN A. MORAN NATHAN I. PARTAIN, CFA CHRISTIAN H. POINDEXTER CARL F. POLLARD DAVID J. VITALE	DNP Select Income Fund Inc. Common stock listed on the New York Stock Exchange under the symbol DNP 200 South Wacker Drive, Suite 500 Chicago, Illinois 60606 (312) 368-5510 Shareholder inquiries please contact: Transfer Agent, Dividend Disbursing Agent and Custodian BNY Mellon Shareowner Services 480 Washington Blvd. Jersey City, New Jersey 07310 (877) 381-2537 Investment Adviser Duff & Phelps Investment Management Co. 200 South Wacker Drive, Suite 500 Chicago, Illinois 60606 (312) 368-5510 Administrator J.J.B. Hilliard, W.L. Lyons, LLC 500 West Jefferson Street Louisville, Kentucky 40202 (888) 878-7845 Legal Counsel Mayer Brown LLP 71 South Wacker Drive Chicago, Illinois 60606 Independent Registered Public Accounting Firm Ernst & Young LLP 233 South Wacker Drive Chicago, Illinois 60606
Officers NATHAN I. PARTAIN, CFA President, Chief Executive Officer and Chief Investment Officer T. BROOKS BEITTEL, CFA Senior Vice President and Secretary JOSEPH C. CURRY, JR. Senior Vice President and Treasurer JOYCE B. RIEGEL Chief Compliance Officer DIANNA P. WENGLER Vice President and Assistant Secretary

 

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ITEM 2.

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 Securities Exchange Act of 1934.

(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 last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 3.

EXHIBITS.

Exhibit 99.CERT

Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 

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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	November 17, 2008

     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	November 17, 2008
By (Signature and Title)	/s/ JOSEPH C. CURRY, JR.
	Joseph C. Curry, Jr. Senior Vice President and Treasurer
Date	November 17, 2008

 

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