These 6% Tax-Free Dividends Are Languishing (for Now). Here's When to Strike
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
Investment Strategy: The article discusses the benefits of diversifying investments, particularly through closed-end funds (CEFs) that hold municipal bonds, which offer tax-free dividends and can provide a significant yield advantage depending on tax brackets.
Market Insights: It highlights the current market situation where municipal bonds have underperformed but may rebound as investors seek safer, high-yielding alternatives amidst stock market fluctuations; specific CEFs like the abrdn National Municipal Income Fund (VFL) are recommended for their attractive discounts.
Analyst Views on VFL
Wall Street analysts forecast VFL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VFL 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: 10.360
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Current: 10.360
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About VFL
abrdn National Municipal Income Fund (the Fund), formerly Delaware Investments National Municipal Income Fund, is a diversified closed-end management investment company. The Fund's investment objective is to provide current income exempt from regular federal income tax, consistent with the preservation of capital by investing in municipal bonds. It invests at least 80% of its net assets in securities, the income from which is exempt from federal income taxes. It also seeks to invest up to 20% of its net assets in municipal bonds with an investment rating of Ba/BB or lower, or that are unrated but judged to be of comparable quality by the Fund's investment adviser. It invests in corporate revenue bonds, education revenue bonds, electric revenue bonds, healthcare revenue bonds, housing revenue bonds, lease revenue bonds, local general obligation bonds, pre-refunded/escrowed to maturity bonds, and special tax revenue bonds. The Fund’s investment manager is abrdn, Inc.
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.
