Nicholas Equity Income Fund, Inc. (NSEIX) was designed to invest in dividend-paying stocks across the market capitalization spectrum. The Fund launched in 1993 and is managed by lead portfolio manager Michael L. Shelton, CFA, CPA, and co-portfolio manager David O. Nicholas, CFA. The Fund has tended to own more small- and mid-cap stocks. We believe the focus on smaller companies allows the Fund to enhance its potential return by combining the long-term principal appreciation of smaller stocks along with the power of dividend income.
As is true with the other Nicholas Funds, a critical component to the Fund’s style is seeking to buy stocks with dividend yields greater than the market, valuations offering the best opportunity for capital appreciation over the long-run and a margin of safety to offset the risk of price declines. The Nicholas philosophy has strongly maintained the benefits of buying stocks at valuations that are afforadble relative to their long-term potential. The Fund’s history suggests this approach can produce more consistent, risk-adjusted returns over time.
Nicholas Equity Income Fund seeks to provide investors with a reasonable stream of income along with long-term capital growth through a diversified portfolio of stocks with attractive dividend yields. The Fund will invest in small- to large-sized companies with capitalizations generally between $1 to $100 billion. The Fund is typically benchmarked against the Standard & Poor’s 500 Index.
(09/30/2025)
| Lead-Portfolio Manager: | Michael L. Shelton |
| Co-Portfolio Manager: | David O. Nicholas |
| Associate Portfolio Manager: | Paul J. Knych |
| Style: | Equity Income, Growth |
| Fund Inception: | 11/23/1993 |
| Fund Assets (millions): | $468.6 |
| Number of Holdings: | 60 |
| Minimum Initial Investment: | $500 |
| Fiscal Year-End: | October 31 |
| Prospectus Date: | July |
| Cusip: | 653734103 |
| Ticker | NSEIX |
(09/30/2025)
(9/30/2025)
| Microsoft Corp | 3.75% |
| Broadcom Inc | 2.86% |
| Analog Devices Inc | 2.78% |
| Chevron Corp | 2.64% |
| JPMORGAN CHASE & CO. | 2.63% |
| Abbott Laboratories | 2.54% |
| TJX Cos Inc/The | 2.54% |
| CMS Energy Corp | 2.52% |
| Oracle Corp | 2.35% |
| Charles Schwab Corp/The | 2.33% |
| Rating | # of Funds | |
| Overall |  |
1,086 |
| 3 Year |  |
1,086 |
| 5 Year | |
1,025 |
| 10 Year | |
842 |
Morningstar Category: Large Growth
Source: Morningstar, as of September 30, 2025.
The Overall Morningstar Rating™ for a fund is derived from a weighted average
of the risk-adjusted performance figures associated with its three-,five- and ten year (if applicable) Morningstar Rating™ metrics.
© [2025] Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or loses arising from any use of this information. Past performance does not guarantee future results.
The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10- year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
One cannot invest directly in an index. Fund holdings and/or sector weightings are subject to change at any time and are not recommendations to buy or sell any security.
The Nicholas Equity Income Fund, Inc. seeks to provide investors with a reasonable stream of income. Its secondary purpose is to provide moderate long-term growth of capital. The Fund pursues its objective by investing in a diversified portfolio of income-producing equity securities and fixed income investments.
Investment Policies & Considerations
Historically, dividends paid by companies to their shareholders have accounted for almost half of the total returns earned by common stocks. This has made dividend-paying stocks an attractive way to provide investors with superior total return.
Our policy is to invest primarily in income-producing securities, such as common stocks, preferred stocks, and convertible securities. We will generally select securities with dividend yields that are expected to be higher than the current dividend yield of the S&P 500.
This portfolio may include investment grade and non-investment grade, as well as rated and non-rated securities. Our manager and analysts perform in-depth credit analysis to determine which investments are appropriate for the Fund. Our analysis considers the issuer’s financial resources, sensitivity to economic trends and conditions, operating history, management, and other factors. In general:
Average Annual Returns
| Fund | 3 Month | YTD | 1 Year | 3 Year | 5 Year | 10 Year |
| Nicholas Fund (NICSX) | 1.25% | 4.09% | 4.94% | 20.88% | 13.42% | 12.03% |
| Nicholas II - Class I (NCTWX) | -1.03% | 0.66% | -0.07% | 11.40% | 7.97% | 9.95% |
| Nicholas II - Class N (NNTWX) | -1.11% | 0.41% | -0.40% | 11.06% | 7.64% | 9.60% |
| Nicholas Limited Edition - Class I (NCLEX) | -3.59% | -7.85% | -7.03% | 7.22% | 5.81% | 9.14% |
| Nicholas Limited Edition - Class N (NNLEX) | -3.67% | -8.04% | -7.33% | 6.89% | 5.51% | 8.83% |
| Nicholas Equity Income Fund (NSEIX) | 4.94% | 9.86% | 6.02% | 13.91% | 11.61% | 10.51% |
Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance current to the most recent month end may be lower or higher than the performance quoted.
Average Annual Returns
| Fund | 3 Month | YTD | 1 Year | 3 Year | 5 Year | 10 Year |
| Nicholas Fund (NICSX) | 1.25% | 4.09% | 4.94% | 20.88% | 13.42% | 12.03% |
| Nicholas II - Class I (NCTWX) | -1.03% | 0.66% | -0.07% | 11.40% | 7.97% | 9.95% |
| Nicholas II - Class N (NNTWX) | -1.11% | 0.41% | -0.40% | 11.06% | 7.64% | 9.60% |
| Nicholas Limited Edition - Class I (NCLEX) | -3.59% | -7.85% | -7.03% | 7.22% | 5.81% | 9.14% |
| Nicholas Limited Edition - Class N (NNLEX) | -3.67% | -8.04% | -7.33% | 6.89% | 5.51% | 8.83% |
| Nicholas Equity Income Fund (NSEIX) | 4.94% | 9.86% | 6.02% | 13.91% | 11.61% | 10.51% |
Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance current to the most recent month end may be lower or higher than the performance quoted.
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Fund's Quarterly Performance Presentation
| Nicholas Fund's Expense Ratio: | 0.70% |
| Nicholas II – Class I's Expense Ratio: | 0.59% |
| Nicholas II – Class N's Expense Ratio: | 0.90% |
| Nicholas Limited Edition – Class I's Expense Ratio: | 0.85% |
| Nicholas Limited Edition – Class N's Expense Ratio: | 1.15% |
| Nicholas Equity Income Fund's Expense Ratio: | 0.70% |
Senior Research Analyst and Portfolio Manager
Industry experience: 29 years
Nicholas Company Tenure: 19 years
Lead Portfolio Manager - Nicholas Equity Income Fund, Inc.
Co-Portfolio Manager - Nicholas Fund, Inc.
Michael joined Nicholas Company in 2006. He serves as lead portfolio manager of Nicholas Equity Income Fund, co-portfolio manager of Nicholas Fund and is a senior research analyst. Michael has a depth of knowledge following years of covering the healthcare, technology and industrial sectors. Michael has had the opportunity to work alongside Dave and Ab Nicholas analyzing companies for each of the investment strategies. This experience has provided a sound basis for his adoption of the long-held Nicholas investment philosophy and process.
Prior to joining Nicholas Company, Michael worked for the Department of Defense Financing & Accounting Service as a financial analyst. He spent three years with Robert W. Baird as a research analyst and at McDonald Investments for one year focusing on healthcare companies. Before starting his investment career, he worked with Ernst & Young as an auditor and tax consultant earning his CPA designation in 1995.
Michael graduated magna cum laude from Miami University in Oxford, Ohio and obtained his M.B.A. from The Ohio State University. He has earned the right to use the CFA designation and is a member of the CFA Society Milwaukee.
Chief Executive Officer, President, Chief Investment Officer and Portfolio Manager
Industry experience: 42 years
Nicholas Company Tenure: 39 years
Lead Portfolio Manager - Nicholas Fund, Inc., Nicholas II, Inc. and Nicholas Limited Edition, Inc.
Co-Portfolio Manager - Nicholas Equity Income Fund, Inc.
Dave Nicholas joined Nicholas Company as an investment analyst in 1986. He serves in a leadership position for the company as CEO and President, while primarily focusing his efforts day-to-day on investments as a Portfolio Manager and the Chief Investment Officer. Dave has developed his philosophy and skills over the past thirty years under the guidance of the long-held investment philosophy and process developed by Albert O. Nicholas, the founder of Nicholas Company. This opportunity has allowed Dave to gain a deep experience and knowledge analyzing companies and the equity markets.
Dave’s approach is aligned with the Nicholas core investment philosophy and process, while adjusting it to meet the characteristics of various capitalization growth companies. Core elements to the philosophy include identifying companies with secular growth capabilities, consistent earnings growth, strong balance sheets and solid management teams. Dave also shares a preference for non-consensus strategies when market opportunities arise.
Dave is the lead portfolio manager of Nicholas Fund, Nicholas II and Nicholas Limited Edition, while serving as co-manager for Nicholas Equity Income Fund. As Chief Investment Officer he guides the firm’s investment process and the investment team on a day-to-day basis.
Dave earned a B.B.A. in Finance from the University of Wisconsin-Madison and completed his M.S. in Finance at the University of Wisconsin-Milwaukee, where he is a member of the University’s Business School Advisory Board. He has earned the right to use the CFA designation and is a member of the CFA Society Milwaukee.
Senior Research Analyst and Associate Portfolio Manager
Industry experience: 19 years
Associate Portfolio Manager - Nicholas Equity Income Fund, Inc.
Paul joined Nicholas Company in September 2023 as a senior research analyst. Paul is focused on stocks of all market capitalizations with a particular emphasis on the consumer discretionary and staples sectors. Effective July 2024, Paul serves as associate portfolio manager of Nicholas Equity Income Fund.
Previously, Paul was a senior research analyst at Nuveen in Minneapolis, MN. During his tenure, he spent over 4 years covering the small cap consumer discretionary and staples sectors. Prior to that, he covered consumer staples and materials in the mid- and large-cap space. Paul has also served as an equity oversight analyst at Nuveen. Prior to his tenure at Nuveen, Paul had 6 years of experience in the investment consulting industry with Mercer Investment Consulting and Aon Hewitt.
Paul earned a B.S. in Business Management from Northeastern Illinois University, and an M.B.A. with an emphasis in Financial Analysis and M.S.F. from DePaul University.
Income Derived From US Government Obligations For 2024
Distribution amounts are per share.
2025 Distribution Dates: Click Here
| Pay Date | Net Investment Income |
Short Term Capital Gains |
Long Term Capital Gains |
Total $ Per Share Distribution |
| 05/08/2025 | 0.10130550 | 0.00000000 | 0.75218000 | 0.85348550 |
| 08/07/2025 | 0.11129044 | 0.00000000 | 0.00000000 | 0.11129044 |
| 10/23/2025 | TBD | TBD | TBD | TBD |
| 12/29/2025 | TBD | TBD | TBD | TBD |
| TBD = To Be Determined |
Income Derived From US Government Obligations For 2024
These forms are in PDF format. You'll need Adobe Acrobat Reader to view them. Click here to download it.
Income Derived from US Government Obligations for 2024
These forms are in PDF format. You'll need Adobe Acrobat Reader to view them. Click here to download it.
Please print, complete and mail to the appropriate address:
Nicholas Family Of Funds
c/o U.S. Bank Global Fund Services
P.O. Box 219301
Kansas City, MO 64121-9301
Nicholas Family Of Funds
c/o U.S. Bank Global Fund Services
801 Pennsylvania Ave
Suite 219301
Kansas City, MO 64105-1307
1-800-544-6547
Automated transactions are available 24 hours a day, 7 days a week.
To speak to a representative, call Monday - Friday, from 8am - 7pm, Central Time.
Shareholders calling from outside the U.S. may call collect, 414-765-4124, Monday - Friday, from 8am -7pm, Central Time.
The Nicholas Funds are offered only to United States residents, and information on this site is intended only for such persons. Nothing on this web site should be considered a solicitation to buy or an offer to sell shares of any Nicholas Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.
Please refer to each prospectus for important information about each investment company, including investment objectives, risks, charges and expenses.
Mutual fund investing involves risk; principal loss is possible. Small- and medium-capitalization companies tend to have limited liquidity and greater price volatility than large-capitalization companies. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investment by the Funds in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities.
Past performance does not guarantee future results.
Diversification does not assure a profit nor protect against loss in a declining market.
Glossary of terms | Privacy & Security | Notice at Collection | Accessibility Statement
Nicholas Funds are distributed by Quasar Distributors, LLC
