Jay Powell's "Adulting" Could Send This 7.8% Tax-Free Dividend Soaring
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 07 2025
0mins
Source: NASDAQ.COM
Interest Rate Dynamics: Jay Powell's recent rate cut and stern warnings indicate that while the Fed is cutting rates, inflation concerns are leading to rising interest rates, creating a potential opportunity in municipal bonds.
Investment Strategy: The Nuveen Quality Municipal Income Fund (NAD) offers a high tax-free yield of 7.8%, making it an attractive investment for 2025, especially as its current discount to NAV suggests potential for growth amidst anticipated market volatility.
Analyst Views on NAD
Wall Street analysts forecast NAD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NAD is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 12.100
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Current: 12.100
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About NAD
Nuveen Quality Municipal Income Fund (the Fund) is a diversified closed-end management investment company. The Fund’s investment objectives are to provide current income exempt from regular federal income tax and to enhance portfolio value relative to the municipal bond market by investing in tax-exempt municipal securities that the Fund’s investment adviser believes are underrated or undervalued or that represent municipal market sectors that are undervalued. The Fund generally invests in municipal securities with long-term maturities in order to maintain an average effective maturity of 15-30 years, including the effects of leverage, but the average effective maturity of obligations held by the Fund may be lengthened or shortened as a result of portfolio transactions effected by the Fund’s investment adviser and/or sub-adviser. Nuveen Fund Advisors, LLC acts as the Fund’s investment adviser. Nuveen Asset Management, LLC (NAM) acts as the Funds sub-advisor.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
