| | | | |
| | | NICHOLAS EQUITY INCOME FUND, INC. | | |
| | | SCHEDULE OF INVESTMENTS (UNAUDITED) | | |
| | | AS OF DECEMBER 31, 2021 | | |
| |
| | SHARES OR | | | |
| | PRINCIPAL | | | |
| | AMOUNT | | | VALUE |
| ------------------ | | ---------------- |
| | COMMON STOCKS - 98.63% | | |
| | | Communication Services - Telecommunications | | |
| | | Services - 1.44% | | |
| | 139,500 | Verizon Communications Inc. | | $ 7,248,420 |
| | | | | ---------------- |
| |
| | | Consumer Discretionary - Durables & | | |
| | | Apparel - 2.45% | | |
| | 97,500 | M.D.C. Holdings, Inc. | | 5,443,425 |
| | 315,000 | Newell Brands Inc. | | 6,879,600 |
| | | | | ---------------- |
| | | | | 12,323,025 |
| | | | | ---------------- |
| |
| | | Consumer Discretionary - Retailing - 8.76% | | |
| | 305,000 | American Eagle Outfitters, Inc. | | 7,722,600 |
| | 48,500 | Best Buy Co., Inc. | | 4,927,600 |
| | 34,000 | Genuine Parts Company | | 4,766,800 |
| | 23,300 | Home Depot, Inc. (The) | | 9,669,733 |
| | 35,500 | Target Corporation | | 8,216,120 |
| | 116,500 | TJX Companies, Inc. (The) | | 8,844,680 |
| | | | | ---------------- |
| | | | | 44,147,533 |
| | | | | ---------------- |
| |
| | | Consumer Discretionary - Services - 1.68% | | |
| | 8,646 | Cedar Fair, L.P. | | 432,819 |
| | 145,000 | Travel + Leisure Co. | | 8,014,150 |
| | | | | ---------------- |
| | | | | 8,446,969 |
| | | | | ---------------- |
| |
| | | Consumer Staples - Food & Staples | | |
| | | Retailing - 1.90% | | |
| | 122,000 | Sysco Corporation | | 9,583,100 |
| | | | | ---------------- |
| |
| | | Consumer Staples - Food, Beverage & | | |
| | | Tobacco - 4.11% | | |
| | 150,000 | Coca-Cola Company (The) | | 8,881,500 |
| | 101,500 | Mondelez International, Inc. - Class A | | 6,730,465 |
| | 53,500 | Philip Morris International Inc. | | 5,082,500 |
| | | | | ---------------- |
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| |
| | | | 20,694,465 |
| | | | ---------------- |
| |
| | Consumer Staples - Household & Personal | | |
| | Products - 1.74% | | |
| 53,500 | Proctor & Gamble Company (The) | | 8,751,530 |
| | | | ---------------- |
| |
| | Energy - 4.56% | | |
| 103,000 | Chevron Corporation | | 12,087,050 |
| 107,500 | ConocoPhillips | | 7,759,350 |
| 119,100 | Enterprise Products Partners L.P. | | 2,615,436 |
| 20,183 | Williams Companies, Inc. (The) | | 525,565 |
| | | | ---------------- |
| | | | 22,987,401 |
| | | | ---------------- |
| |
| | Financials - Banks - 6.24% | | |
| 390,000 | First Horizon Corporation | | 6,368,700 |
| 61,500 | JPMorgan Chase & Co. | | 9,738,525 |
| 52,800 | PNC Financial Services Group, Inc. (The) | | 10,587,456 |
| 85,000 | Webster Financial Corporation | | 4,746,400 |
| | | | ---------------- |
| | | | 31,441,081 |
| | | | ---------------- |
| |
| | Financials - Diversified - 8.70% | | |
| 6,950 | BlackRock, Inc. | | 6,363,142 |
| 125,000 | Charles Schwab Corporation (The) | | 10,512,500 |
| 50,500 | Cohen & Steers, Inc. | | 4,671,755 |
| 104,500 | Northern Trust Corporation | | 12,499,245 |
| 97,500 | Raymond James Financial, Inc. | | 9,789,000 |
| | | | ---------------- |
| | | | 43,835,642 |
| | | | ---------------- |
| |
| | Financials - Insurance - 1.99% | | |
| 52,000 | Chubb Limited | | 10,052,120 |
| | | | ---------------- |
| |
| | Health Care - Equipment & Services - 7.20% | | |
| 62,000 | Abbott Laboratories | | 8,725,880 |
| 90,800 | CVS Health Corporation | | 9,366,928 |
| 109,000 | Medtronic Public Limited Company | | 11,276,050 |
| 200,000 | Smith & Nephew plc | | 6,924,000 |
| | | | ---------------- |
| | | | 36,292,858 |
| | | | ---------------- |
| |
| | Health Care - Pharmaceuticals, | | |
| | Biotechnology & Life Sciences - 5.32% | | |
| 53,000 | AbbVie Inc. | | 7,176,200 |
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| | | | |
| 55,500 | Johnson & Johnson | | 9,494,385 |
| 132,500 | Merck & Co., Inc. | | 10,154,800 |
| | | | --------------- |
| | | | 26,825,385 |
| | | | --------------- |
| |
| | Industrials - Capital Goods - 10.05% | | |
| 43,500 | Eaton Corporation plc | | 7,517,670 |
| 32,500 | Honeywell International Inc. | | 6,776,575 |
| 41,500 | Illinois Tool Works Inc. | | 10,242,200 |
| 44,500 | Lincoln Electric Holdings, Inc. | | 6,206,415 |
| 14,500 | Lockheed Martin Corporation | | 5,153,445 |
| 46,500 | Stanley Black & Decker, Inc. | | 8,770,830 |
| 11,500 | W.W. Grainger, Inc. | | 5,959,760 |
| | | | --------------- |
| | | | 50,626,895 |
| | | | --------------- |
| |
| | Information Technology - Hardware & | | |
| | Equipment - 4.34% | | |
| 204,000 | Cisco Systems, Inc. | | 12,927,480 |
| 250,000 | Juniper Networks, Inc. | | 8,927,500 |
| | | | --------------- |
| | | | 21,854,980 |
| | | | --------------- |
| |
| | Information Technology - Semiconductors & | | |
| | Semiconductor Equipment - 7.73% | | |
| 64,500 | Analog Devices, Inc. | | 11,337,165 |
| 15,500 | Broadcom Inc. | | 10,313,855 |
| 138,000 | Microchip Technology Incorporated | | 12,014,280 |
| 28,000 | Texas Instruments Incorporated | | 5,277,160 |
| | | | --------------- |
| | | | 38,942,460 |
| | | | --------------- |
| |
| | Information Technology - Software & | | |
| | Services - 4.50% | | |
| 58,500 | International Business Machines Corporation | | 7,819,110 |
| 44,250 | Microsoft Corporation | | 14,882,160 |
| | | | --------------- |
| | | | 22,701,270 |
| | | | --------------- |
| |
| | Materials - 6.31% | | |
| 32,750 | Air Products and Chemicals, Inc. | | 9,964,515 |
| 33,500 | Avery Dennison Corporation | | 7,255,095 |
| 125,500 | DuPont de Nemours, Inc. | | 10,137,890 |
| 27,500 | Scotts Miracle-Gro Company (The) - Class A | | 4,427,500 |
| | | | --------------- |
| | | | 31,785,000 |
| | | | --------------- |
| |
| | Real Estate - 4.76% | | |
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| | | | |
| | 40,712 | Digital Realty Trust, Inc. | | 7,200,732 |
| | 9,750 | Equinix, Inc. | | 8,246,940 |
| | 104,300 | W.P. Carey Inc. | | 8,557,815 |
| | | | | ---------------- |
| | | | | 24,005,487 |
| | | | | ---------------- |
| |
| | | Utilities - 4.85% | | |
| | 89,000 | CMS Energy Corporation | | 5,789,450 |
| | 80,500 | Dominion Energy, Inc. | | 6,324,080 |
| | 96,500 | NextEra Energy, Inc. | | 9,009,240 |
| | 34,000 | WEC Energy Group, Inc. | | 3,300,380 |
| | | | | ---------------- |
| | | | | 24,423,150 |
| | | | | ---------------- |
| |
| | | TOTAL COMMON STOCKS | | |
| | | (cost $337,141,820) | | 496,968,771 |
| | | | | ----------------- |
| |
| SHORT-TERM INVESTMENTS - 1.27% | | |
| | | U.S. Government Security - 0.89% | | |
| $4,500,000 | U.S. Treasury Bill 01/04/2022, 0.016% | | 4,499,997 |
| | | | | ---------------- |
| |
| | | Money Market Fund - 0.38% | | |
| | 1,934,817 | Morgan Stanley Liquidity Funds Government | | |
| | | Portfolio (Institutional Class), | | |
| | | 7-day yield, 0.03% | | 1,934,817 |
| | | | | ---------------- |
| | | TOTAL SHORT-TERM INVESTMENTS | | |
| | | (cost $6,434,814) | | 6,434,814 |
| | | | | ---------------- |
| |
| | | TOTAL INVESTMENTS | | |
| | | (cost $343,576,634) - 99.90% | | 503,403,585 |
| | | | | ---------------- |
| |
| | | OTHER ASSETS, NET OF LIABILITIES - 0.10 | | 483,363 |
| | | | | ---------------- |
| | | TOTAL NET ASSETS | | |
| | | (basis of percentages | | |
| | | disclosed above) - 100% | | $503,886,948 |
| | | | | ---------------- |
| | | | | ---------------- |
As of December 31, 2021, investment cost for federal tax purposes was $342,240,921 and the tax basis components of unrealized appreciation/depreciation were as follows:
| Unrealized appreciation | | $165,515,143 | |
| Unrealized depreciation | | (4,352,479 | ) |
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| | | ---------------- |
| Net unrealized appreciation | | $161,162,664 |
| | | ---------------- |
| | | ---------------- |
For information on the Fund's policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund's most recent Semiannual or Annual Report to Shareholders.
Various inputs are used in determining the value of the Fund's investments relating to Accounting Standards Codification 820-10.
The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used as of December 31, 2021 in valuing the Fund’s investments carried at value:
| | | Investments |
| Valuation Inputs | | in Securities |
| ---------------- | | ----------------- |
| Level 1 - | | |
| Common Stocks(1) | | $496,968,771 |
| Money Market Fund | | 1,934,817 |
| Level 2 - | | |
| U.S. Government Securities | | 4,499,997 |
| Level 3 - | | |
| None | | -- |
| | | ---------------- |
| Total | | $503,403,585 |
| | | ---------------- |
| | | ---------------- |
| |
| (1) See Schedule above for further detail by industry. | | |
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