Dividends4Life: 3 High-Yield Closed-End Funds for Tax-Free Income

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3 High-Yield Closed-End Funds for Tax-Free Income

Posted by D4L | Thursday, September 28, 2017 | | 0 comments »

Closed-end funds have become popular in recent years as bond yields have dropped precipitously. As a result, income investors have gone further out on the yield curve to find the kind of yields with CEFs they used to enjoy in the days when bonds were offering higher interest payments. Today, I’m looking at three tax-free municipal bond CEFs as possible starting points for investors to consider adding to the portfolio. They aren’t quite up to the standards of The Liberty Portfolio, but they have many strong attributes...

BlackRock Municipal Bond Trust (NYSE:BBK) is a decent candidate for more aggressive investors, although it has pieces that I’m not crazy about. BBK invests in municipal bonds that are tax-exempt for federal income tax purposes. Western Asset Municipal Partners Fund Inc. (NYSE:MNP) has a few things going for and against it. MNP is like most municipal bond tax-free funds in that also has carried muni bonds from states that aren’t in great shape. If you want to stick with muni bonds from Texas, the 23rd highest-rated state according to Mercatus, consider Nuveen Texas Quality Municipal Income Fund (NYSE:NTX).

Source: InvestorPlace

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