Edgar Filing: DNP SELECT INCOME FUND INC

Dear Fellow Shareholders:

Performance Review--Your Fund had a total return (market price change plus
income) of 0.1% for the third quarter of 2002. In comparison, the S&P Utilities
Index had a total return of -22.3%, and 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 -16.4%. The Fund's comparable total returns for the
year-to-date period are -4.4%, -33.1%, and -24.8% respectively.

During the third quarter of 2002, your Fund paid three monthly 6.5 cent
dividends. The 6.5 cent per share monthly rate, without compounding, would be
78 cents annualized, or a 7.82% common stock dividend yield based on the
September 30, 2002, closing price of $9.97 per share. That yield compares
favorably with the quarter-end yields of 6.00% on the Dow Jones Utility Index
and 5.66% on the S&P Utilities Index.

Most stock investors, whether in utilities or in equities generally, have
suffered significant market volatility and negative returns for the first three
quarters of this year. As shareholders of this Fund, you have enjoyed
significantly better results than any popular broad index, but have experienced
volatility. A review of factors contributing to the general market malaise, and
factors specific to the utility industries, may give perspective on how we
arrived at this situation and where we might be headed.

Looking Back: The nine years of economic growth that began in 1991 were the
longest period of expansion in U.S. history. The domestic economy grew over 4%
annually during the last several years of the expansion cycle, and unemployment
was low. A large U.S. trade deficit meant that American demand was creating
prosperity abroad, and even in long-suffering Japan, the government was
claiming that the worst was over and recovery was on the way.

The stock market enjoyed historically high total returns for the decade of the
1990's. Corporate high-tech investments, particularly in computers and
communications, were changing the face of business - increasing productivity
and elevating growth and income expectations. The rising stock market reflected
these expectations, which in turn encouraged consumers to spend. Business
investment surged with easily available financing from the stock and bond
markets.

The stock markets began discounting a coming slowdown early in 2000. However,
it was not until late in 2001 that the business cycle dating committee--a panel
of senior economists at the National Bureau of Economic Research--determined
that the U.S. economy had, in fact, entered recession in March 2001. What many
investors first hoped would be a small correction in the stock markets became
one of the worst bear markets on record. What happened?

Over the course of the previous decade, the growth in productive capacity for
many types of consumer durable goods and business capital equipment had
outpaced the demand for the output of the new capacity. Further, such factors
as a rise in the cost of energy beginning late in 2000, emerging economic
weakness on the part of our major international trading partners, and the
terrorist attacks in New York City in September 2001 reduced consumer
purchasing power and confidence. A cycle of lower consumption and production
became self-fulfilling, and in some sectors business inventory liquidation
occurred. As it became clearer that economic growth and corporate profitability
forecasts were persistently optimistic, investors reduced commitments to stocks
and corporate bonds and prices fell.

Cyclical revaluation of investments based on business conditions is not
uncommon, and typically affects all industries simultaneously to one degree or
another. As we have discussed in previous shareholder letters, the utility
industries in which your Fund invests have been affected by sector-specific
factors in addition to factors affecting the general market.

For the electric utilities, a mild 2001 summer cooling and fall heating season
coupled with the economic downturn reduced demand for electricity. As demand
was weakening, the industry was also experiencing a very large increase in
generation capacity, which was motivated by projected growth in electricity
demand, facilitated by federal and state deregulation schemes, and financed by
exuberant stock and bond markets. As it turned out however, the current
electricity needs were lower than projected, the regulatory schemes were
flawed, and the capital markets lost their exuberance.

The telecommunication industry has also experienced weak demand as a result of
the recession and the ongoing effects of deregulation. New competitors have
entered the field and old competitors have crossed into each other's turf. The
resulting heightened competition has depressed prices -- a boon to consumers
but a bane to stockholders. Moreover, technological developments had spurred
many companies to invest in new infrastructure to accommodate what is now
acknowledged to have been an overly optimistic forecast in near-term demand for
high-speed data transfer and wireless services.

Looking Forward: From a macroeconomic perspective, the recovery from recession
has not yet gained solid momentum. After a growth spurt during the first
quarter this year, the Gross Domestic Product (GDP) has continued to experience
positive growth but at a slower, choppy pace. Data also indicate that although
the labor market is stabilizing with fewer layoffs, new hiring and job creation
is lackluster. The economic recovery will have limited upside without a
stronger job market, which in turn supports consumer spending and investor
confidence.

Still, the resilience of the American consumer has been a key factor in the
relative shallowness of the recession. High-productivity growth has boosted
inflation-adjusted wages and income during this period and, coupled with low
interest rates, has made it easier for consumers to afford big-ticket
purchases, such as autos, houses and furniture. Business capital investment is
likely to follow consumer spending and improve gradually, allowing companies to
profit from the productivity of new technology.

The risk of war with Iraq remains a wildcard for the economy. Oil prices have
risen steadily during the past few months, reflecting fear that war will
disrupt world oil flows. If a war were limited as to theater and duration, any
further price rises likely would be moderate and, with less uncertainty, prices
might decline in the intermediate term. Most alternative scenarios involve more
uncertainty and risk.

During this prolonged period of economic weakness and uncertainty, the Federal
Reserve has acted to support demand and lay the groundwork for growth by
aggressively easing monetary policy. On November 6, 2002, the Fed lowered the
federal funds rate to 11/4%--a forty-year low. We believe that accommodative
monetary policy, increased federal spending, and likely continued tax
initiatives will nurture the economy's growth rate in 2003.

While improving economic fundamentals enhance the outlook for the utility
industry, the industry still needs to work its way through the competitive
environment and its unexpected side effects. For some companies the remedies
could be a combination of asset sales, delays in capital spending, debt
repayment, and equity issuance, or possibly merger or even failure. Many
companies are returning to their core competencies, restructuring their balance
sheets and exiting unprofitable businesses. For some other companies,
particularly those with management that has guided them successfully through
difficult times, this can be a period of opportunity to purchase good assets at
attractive prices.

Supportive regulation and management capacity to handle regulatory risk are
possibly the most important factors that will affect the health of utility
companies going forward, because the consequences of decisions made in this
arena will have the longest-term and most direct impact on companies, their
employees, and the value of their stocks. Unfortunately, regulation continues
to evolve in ways that can be difficult to divine.

American investors are still recovering from a crisis in confidence in
corporate governance and financial reporting triggered by the bankruptcy of
Enron Corp. following major restatements of historical earnings. A series of
subsequent revelations by other public companies of failures in their corporate
governance, financial reporting and independent audit systems has severely
shaken the U.S. capital markets. The utilities industry has been particularly
affected because of the major role Enron played in the energy markets. In July
2000, Congress enacted the Sarbanes-Oxley Act to address various structural
weaknesses in the reporting and control systems of public companies. We hope
that the implementation of the Sarbanes-Oxley reforms will restore investor
confidence in the integrity of corporate management and the accuracy of
financial statements.

Your Fund management believes that the stage is being set for a recovery in the
valuation of high-quality securities. Seizing opportunities to invest in
quality companies with strong corporate management and dividends while avoiding
less secure investments have been key elements of Fund performance to-date. We
remain diligent in our analysis and in our efforts to maintain a high-quality
portfolio of investments for the Fund.

Board of Directors Meeting--At the regular October Board of Directors' meeting,
the Board declared the following monthly dividend:

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

6.5 cents November 29 December 10

As is customary, the December dividend will be declared at the December meeting
of the Board of Directors.

Automatic Dividend Reinvestment Plan and Direct Deposit Service--The Fund has a
dividend reinvestment plan available to all registered shareholders. 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

DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS
(UNAUDITED)
SEPTEMBER 30, 2002

COMMON STOCKS--83.9%

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

[_] ELECTRIC--49.8%
1,300,000 Allegheny Energy Inc....................... $ 17,030,000
1,000,000 Allete Inc................................. 21,600,000
1,001,000 Ameren Corp................................ 41,691,650
2,425,000 Aquila Inc................................. 9,942,500
428,300 Consolidated Edison Inc.................... 17,226,226
/# /796,000 Dominion Resources......................... 40,381,080
1,000,000 DTE Energy Co.............................. 40,700,000
1,100,000 Energy East Corp........................... 21,791,000
1,000,000 Exelon Corp................................ 47,500,000
/# /900,000 FPL Group Inc.............................. 48,420,000
1,750,000 Iberdrola S.A. (Spain)..................... 22,657,640
/#/1,000,000 Keyspan Corp............................... 33,500,000
215,000 National Grid Group PLC ADR................ 7,654,000
770,000 National Grid Group PLC (United Kingdom)... 5,458,052
/#/2,256,600 NiSource Inc............................... 38,881,218
/#/1,318,600 NSTAR...................................... 52,150,630
1,120,000 Pinnacle West Capital Corp................. 31,091,200
1,375,000 Progress Energy Inc........................ 56,196,250
/#/1,000,000 Public Service Enterprise Group............ 30,500,000
850,000 Scottish & Southern Energy (United Kingdom) 9,129,580
200,000 Scottish & Southern Energy ADR............. 21,544,600
/#/2,647,300 Southern Co................................ 76,189,294
893,971 TXU Corp................................... 37,287,530
/#/1,500,000 Vectren Corp............................... 33,000,000
------------
761,522,450

[_] GAS--4.9%
926,000 AGL Resources.............................. 20,455,340
/# /900,000 Peoples Energy Corp........................ 30,321,000
/#/1,000,000 WGL Holdings Inc........................... 23,910,000
------------
74,686,340

The accompanying note is an integral part of this financial statement.

DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
September 30, 2002

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

[_] TELECOMMUNICATION--12.7%

/#/1,000,000 Alltell Corp............................. $ 40,130,000
1,730,000 BellSouth Corp........................... 31,762,800
1,637,230 SBC Communications Inc................... 32,908,323
700,000 Swisscom AG ADR.......................... 19,285,000
/#/856,250 Telecom Corp. of New Zealand Interim ADR. 15,926,250
1,068,400 Telstra Corp. ADR........................ 13,846,464
/#/1,519,000 Verizon Communications................... 41,681,360
------------
195,540,197

[_] NON-UTILITY--16.5%
130,000 Apartment Investment & Management Co..... 5,050,500
195,000 Archstone Smith Trust.................... 4,656,600
340,000 Boston Properties Inc.................... 12,648,000
120,000 Camden Property Trust.................... 3,978,000
382,400 CBL & Associates Properties Inc.......... 14,818,000
/#/247,000 Centerpoint Properties Corporation....... 13,708,500
580,000 Chelsea GCA Realty Inc................... 19,575,000
100,000 Colonial Properties Trust................ 3,618,000
115,318 Corporate Office Properties Trust........ 1,562,559
451,214 Developers Diversified Realty Corporation 9,931,220
295,000 Duke Realty Corp......................... 7,262,900
205,000 Equity Office Properties Trust........... 5,293,100
210,000 Equity Residential Properties Trust...... 5,027,400
83,100 Essex Property Trust Inc................. 4,108,464
100,000 First Industrial Realty Trust............ 3,099,000
/#/275,000 General Growth Properties, Inc........... 14,162,500
/#/290,000 Green S.L. Realty Properties Inc......... 8,914,600
167,000 Health Care Property Investors Inc....... 7,114,200
223,000 Health Care Realty Trust Inc............. 6,935,300
215,000 Hospitality Properties Trust............. 7,120,800
266,400 iStar Financial Inc. .................... 7,437,888
48,000 Kimco Realty Corp........................ 1,492,800
175,000 Macerich Co.............................. 5,421,500
300,000 Pan Pacific Retail Properties Inc........ 10,344,000
/#/495,600 ProLogis Trust........................... 12,345,396

The accompanying note is an integral part of this financial statement.

DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
September 30, 2002

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

90,000 Realty Income Corp............................. $ 3,073,500
35,025 Reckson Associates Realty Corp................. 797,519
171,545 Reckson Associates Realty Corp. Class B........ 4,074,194
119,367 Shurgard Storage Centers Inc................... 3,774,385
/#/387,000 Simon Property Group........................... 13,827,510
580,000 United Dominion Realty Trust................... 9,227,800
340,000 Vornado Realty Trust........................... 13,413,000
231,750 Weingarten Realty Investors.................... 8,482,050
--------------
252,296,185
--------------
Total Common Stocks (Cost--$1,473,110,877)..... 1,284,045,172
--------------

PREFERRED STOCKS--18.0%

[_] UTILITY--18.0%
200,000 Alltel Corp 73/4% 5/17/05...................... 8,700,000
750,000 Ameren Corp. 93/4% 5/15/05..................... 20,025,000
450,900 Aquila Inc. 93/4% 11/16/02..................... 2,525,040
/#/1,200,000 Centurytel Inc. 6 7/8% 5/15/05................. 25,512,000
626,200 Cinergy Corp. 91/2% 2/16/05.................... 33,188,600
/#/450,000 Dominion Resources 91/2% 11/16/04.............. 22,855,500
986,700 DTE Energy Co. 83/4% 8/16/05................... 25,427,259
/#/700,000 Duke Capital Financing Trust III 8 3/8% 8/31/29 17,962,000
/#/876,000 Duke Energy 8 1/4% 5/18/04..................... 14,322,600
223,500 EIX Trust II Series B 8.60% 10/29/29 **........ 4,391,775
500,000 FPL Group Inc. 81/2% 2/16/05................... 25,750,000
200,000 Keyspan Corp. 83/4% 5/16/05.................... 9,730,000
550,000 MediaOne Group 7.00% 11/15/02.................. 7,441,500
500,000 NiSource Industries Inc. 7.75% 2/19/03......... 17,225,000
400,000 TXU Corp. 83/4% 11/16/05....................... 18,376,000
500,000 TXU Corp. 8 1/8% 5/16/06....................... 21,775,000
--------------
Total Preferred Stocks (Cost--$324,708,261).... 275,207,274
--------------

The accompanying note is an integral part of this financial statement.

DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
September 30, 2002

BONDS--32.3%

Ratings
-------------------------
Fitch
IBCA, Standard Market
Duff & and Value
Par Value Company Phelps Moody's Poor's (Note 1)
------------- ------- -------- ------- -------- -----------

[_] ELECTRIC--15.9%
$ 4,975,987 AES Ironwood Corp.
8.857%, due 11/30/25............ Not Rated Ba2 BB- $ 3,747,908
/#/23,571,000 Cleveland Electric Illuminating
9%, due 7/01/23................. BBB Baa2 BBB 24,929,915
/#/18,050,000 Comed Financing II
8 1/2%, due 1/15/27............. Not Rated Baa2 BBB 20,529,619
7,500,000 Commonwealth Edison Co.
9 7/8%, due 6/15/20............. A- A3 A- 8,885,100
/#/10,000,000 Commonwealth Edison Co.
8 3/8%, due 2/15/23............. A- A3 A- 10,570,450
6,000,000 Dayton Power and Light
8.15% due 1/15/26............... AA A2 BBB+ 6,097,014
/#/24,000,000 Dominion Resources Capital Trust
7.83%, due 12/01/27............. Not Rated Baa2 BBB- 24,792,456
5,000,000 Gulf States Utilities
8.94%, due 1/01/22.............. Not Rated Baa3 BBB- 5,238,075
1,000,000 Houston Lighting
8 3/4%, due 3/01/22............. A- A3 BBB 1,043,329
19,800,000 Hydro--Quebec
9 3/4%, due 1/15/18............. AA- A1 A+ 20,225,324
5,000,000 Illinois Power Co.
7 1/2, due 7/15/25.............. BB- B1 B+ 3,800,000
#5,000,000 Progress Energy Inc.
7 3/4% 3/1/31................... Not Rated Baa1 BBB 5,469,920
9,000,000 PSEG Power
8 5/8% 4/15/31.................. Not Rated Baa1 BBB 8,990,946
15,830,000 Public Service Co. of Colorado
8 3/4%, due 3/01/22............. BBB Baa1 BBB+ 16,314,841
22,750,000 Puget Capital Trust
8.231%, due 6/01/27............. Not Rated Ba1 BB 23,347,711

The accompanying note is an integral part of this financial statement.

DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
September 30, 2002

Ratings
-------------------------
Fitch
IBCA, Standard Market
Duff & and Value
Par Value Company Phelps Moody's Poor's (Note 1)
------------- ------- -------- ------- -------- ------------

$13,000,000 Southern Co. Capital Trust
8.14%, due 2/15/27........... Not Rated Baa1 BBB+ $ 14,418,300
5,500,000 Texas Utilities Corp.
7 7/8%, due 3/1/23........... A- A3 BBB 5,774,626
12,000,000 UtiliCorp United Inc.
8%, due 3/01/23.............. BBB- Ba2 BBB- 8,313,384
/#/10,000,000 Virginia Electric & Power Co.
8 5/8%, due 10/01/24......... Not Rated A2 A 11,157,470
/#/17,700,000 Virginia Electric & Power Co.
8 1/4%, due 3/01/25.......... Not Rated A2 A 19,569,952
------------
243,216,340
[_] GAS--3.7%
5,125,000 ANR Pipeline Co.
9 5/8%, due 11/01/21......... Not Rated Baa2 BBB+ 4,675,251
5,000,000 KN Energy Inc.
7 1/4%, due 3/01/28.......... BBB Baa2 BBB 5,186,490
10,000,000 Northern Border Partners L.P.
8 7/8%, due 6/15/10.......... BBB+ Baa2 BBB+ 11,867,520
6,488,000 Southern Union Co.
7.60%, due 2/01/24........... BBB Baa3 BBB+ 6,463,229
8,850,000 Southern Union Co.
81/4%, due 11/15/29.......... BBB Baa3 BBB+ 9,468,190
10,000,000 TE Products Pipeline Co.
7.51%, due 1/15/28........... Not Rated Baa3 BBB 9,454,620
9,000,000 Trans-Canada Pipeline
9 1/8%, due 4/20/06.......... Not Rated A3 BBB+ 10,528,218
------------
57,643,518
------------

[_] TELECOMMUNICATION--9.4%
/#/19,000,000 AT&T Corp.
8.35%, due 1/15/25........... BBB+ Baa2 BBB+ 17,485,985
15,000,000 AT&T Wireless Services Inc.
83/4%, due 3/01/31........... BBB Baa2 BBB 10,826,325

The accompanying note is an integral part of this financial statement.

DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
September 30, 2002

Ratings
--------------------------
Fitch
IBCA, Standard Market
Duff & and Value
Par Value Company Phelps Moody's Poor's (Note 1)
-------------- ------- --------- ------- -------- ------------

/#/$10,000,000 Bell South Capital Funding
7 7/8% 2/15/30............ AA- Aa3 A+ $ 12,064,990
/#/25,000,000 British Telecom PLC
8 5/8%, due 12/15/30...... Not Rated Baa1 A- 30,251,275
5,000,000 Centurytel Inc.
6 7/8%, due 1/15/28....... Not Rated Baa2 BBB+ 4,449,365
10,000,000 Centurytel Inc.
8 3/8%, due 10/15/10...... Not Rated Baa2 BBB+ 11,102,820
12,000,000 GTE California Inc.
8.07%, due 4/15/24........ AA AA3 A+ 12,456,504
2,835,000 GTE Corp.
9.10 %, due 6/01/03....... Not Rated A2 A+ 2,916,259
17,625,000 GTE Corp.
7.90%, due 2/01/27........ Not Rated A2 A+ 18,437,830
9,000,000 New York Telephone Co.
7 5/8%, due 2/01/23....... AA A1 A+ 8,988,453
9,000,000 Tele-Commun Inc.
9.80%, due 2/01/12........ BBB+ Baa3 BBB+ 8,973,252
5,000,000 Vodafone Group PLC
7 7/8% 2/15/30............ Not Rated A2 A 5,708,260
------------
143,661,318
------------

[_] NON-UTILITY--3.3%
/#/17,500,000 Continental Cablevision
91/2%, due 8/01/13........ Not Rated Baa3 BBB+ 16,986,760
8,000,000 Dayton Hudson Corp.
9 7/8%, due 7/01/20....... A A2 A+ 11,484,568
19,940,000 EOP Operating LP
71/2%, due 4/19/29........ BBB+ Baa1 BBB+ 21,746,664
------------
50,217,992
------------
Total Bonds (Cost--$496,432,969)...................... 494,739,168
------------

The accompanying note is an integral part of this financial statement.

DNP SELECT INCOME FUND INC.
STATEMENT OF NET ASSETS--(Continued)
(UNAUDITED)
September 30, 2002

Market
Value
(Note 1)
--------------

U.S. TREASURY OBLIGATIONS--1.5%
/#/$19,400,000 U.S. Treasury Notes
10 3/4%, due 5/15/03............................................... $ 20,517,789
2,000,000 U.S. Treasury Bonds
10 3/4%, due 8/15/05............................................... 2,487,344
--------------
Total U.S. Treasury Obligations (Cost--$23,796,094)................ 23,005,133
--------------

U.S. GOVERNMENT AGENCY OBLIGATIONS--4.4%
/#/65,000,000 Federal Home Loan Mortgage Corp.
9 3/4%, due 2/14/03................................................ 66,951,950
--------------
Total U.S. Government Agency Obligations (Cost--$70,759,000)....... 66,951,950
--------------

COMMERCIAL PAPER--5.2%
30,000,000 Citicorp
1.73%, due 10/03/02................................................ 29,997,117
50,000,000 General Electric Capital Corp.
1.77%, due 10/08/02................................................ 49,982,791
--------------
Total Commercial Paper (Amortized Cost--$79,979,908)............... 79,979,908
--------------

CASH AND OTHER ASSETS LESS LIABILITIES--(1.3%)............................................. (193,898,720)
--------------

REMARKETED PREFERRED STOCK
($.001 par value per share; 100,000,000 shares authorized and 5,000 shares issued and
outstanding; liquidation preference $100,000 per share)................................ (500,000,000)
==============

NET ASSETS APPLICABLE TO COMMON STOCK
(equivalent to $7.10 per share of common stock based on 215,418,475 shares of common stock
outstanding; authorized 250,000,000 shares).............................................. $1,530,029,885
==============

** Dividends currently are deferred.
/#/ This security, or a portion of this security, is out on loan at September
30, 2002. Total loaned securities had a market value of $471,284,955 at
September 30, 2002.

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

--------
(1)The market values for securities are determined as follows: Securities
traded on a national securities exchange or traded over-the-counter and
quoted on the NASDAQ System are valued at last sales prices. Securities so
traded for which there were no sales and other securities are valued at the
mean of the most recent bid-asked quotations. Bonds not traded on a
securities exchange nor quoted on the NASDAQ System are valued at 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. Other
assets and securities are valued at a fair value, as determined in good
faith by the Board of Directors.

Board of Directors

WALLACE B. BEHNKE

HARRY J. BRUCE

FRANKLIN A. COLE

GORDON B. DAVIDSON

CONNIE K. DUCKWORTH

ROBERT J. GENETSKI

CLAIRE V. HANSEN, CFA

FRANCIS E. JEFFRIES, CFA

NANCY LAMPTON

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, Secretary and Treasurer

MICHAEL SCHATT
Senior Vice President

JOSEPH C. CURRY, JR.
Vice President

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
190 South LaSalle Street
Chicago, Illinois 60603

Independent Public Accountants

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

DNP Select
Income Fund Inc.

Third
Quarter Report

September
30, 2002
[Artwork]