Our Christmas Gift: A 7.9% Tax-Free Dividend Plus 8% Discount
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
Investment Opportunities in Municipal Bonds: The article highlights the advantages of investing in municipal bonds, particularly those from the Las Vegas Valley Nevada Water District, which offer a tax-free yield of 5% that can equate to 6-7% depending on tax brackets. It also discusses closed-end funds that provide even higher yields and tax benefits.
Market Conditions and Fed Influence: The piece emphasizes the current market dynamics where bond prices are low due to recent Federal Reserve rate cuts, suggesting that this presents a buying opportunity for contrarian investors as the economy remains strong and credit risk is minimal.
Analyst Views on NEA
Wall Street analysts forecast NEA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NEA 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: 11.760
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Current: 11.760
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About NEA
Nuveen AMT-Free Quality Municipal Income Fund (NEA) is a diversified, closed-end management company. The Fund’s investment objectives are to provide current income exempt from regular federal income tax and federal alternative minimum tax applicable to individuals, and to enhance portfolio value relative to the municipal bond market by investing in tax-exempt municipal securities, which the Fund’s investment adviser believes are underrated or undervalued or that represent municipal market sectors that are undervalued. The Fund may invest at least 80% of its Assets (as defined below) in municipal securities and other related investments, which pay interest exempt from regular federal income tax. Additionally, the Fund may invest at least 80% of its Assets in a portfolio of securities, the income from, which is exempt from the federal alternative minimum tax applicable to individuals. Investment advisor of the Fund is Nuveen Fund Advisors, LLC.
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.
