These 6% Tax-Free Dividends Are Languishing (for Now). Here's When to Strike
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 14 2025
0mins
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.
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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.
0 Analyst Rating
0 Buy
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0 Sell
Current: 10.420
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Current: 10.420
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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.
Aberdeen Investments Announces Multiple Closed-End Fund Distributions, Up to $0.21 per Share
- Distribution Payment Announcement: Aberdeen Investments' closed-end funds will pay distributions on January 30, 2026, to shareholders of record as of January 23, 2026, with amounts ranging from $0.04 to $0.21 per share, demonstrating the company's commitment to returning value to investors.
- Transparent Distribution Sources: In compliance with the 1940 Investment Company Act, Aberdeen will disclose the sources of distributions to shareholders, including net investment income and capital gains, ensuring investors have a clear understanding of the origins of their payouts.
- Flexible Distribution Policy: The distribution policy for each fund can be modified by the board at any time, indicating that while current distributions are stable, they may be adjusted in response to market conditions, which could impact investor returns.
- Tax Information Disclosure: At the end of each calendar year, Aberdeen will send shareholders a Form 1099-DIV detailing the distribution amounts and their tax treatment, aiding investors in tax planning and ensuring compliance with regulations.
See More
Aberdeen Investments Announces 2026 Distribution Plans for Closed-End Funds
- Distribution Payment Date: Aberdeen Investments' closed-end funds will pay distributions on January 30, 2026, to all shareholders of record as of January 23, 2026, ensuring timely returns for investors and enhancing confidence in the funds.
- Distribution Amount Overview: The funds will distribute amounts ranging from $0.0400 to $0.2100 per share, with the abrdn Global Infrastructure Income Fund offering the highest distribution at $0.2100, reflecting its robust income generation capabilities.
- Transparency in Distribution Policy: At the end of each calendar year, the funds will send a Form 1099-DIV to shareholders detailing the amounts and composition of distributions, enhancing transparency and trust among investors regarding tax implications.
- Investor Risk Advisory: The distribution policy is subject to modification at any time, and the distribution amounts should not be viewed as direct indicators of investment performance, reminding investors to consider market fluctuations affecting the funds' net asset values.
See More
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- Reorganization Plan: The Board of Trustees of abrdn National Municipal Income Fund (VFL) has approved the reorganization into MFS Municipal Income Trust (MFM), aiming to create a larger fund that enhances trading volume and reduces the discount to net asset value over time.
- Shareholder Benefits: Post-reorganization, VFL shareholders will have the opportunity to invest in a significantly larger fund with a targeted annual distribution rate of 6%, potentially increasing their returns.
- Voting Arrangement: Common and preferred shareholders of VFL will vote on the proposal at a special meeting scheduled for March 11, 2026, and if approved, the reorganization is expected to close in the second quarter of 2026.
- Asset Management Scale: As of September 30, 2025, abrdn Investments managed approximately $515 billion in assets, while MFS had about $655.2 billion, and the reorganization is expected to further strengthen their market positions.
See More
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- Distribution Announcement: Aberdeen Investments has revealed that several closed-end funds will pay distributions on January 12, 2026, to shareholders of record as of December 31, 2025, indicating the company's ongoing commitment to shareholder returns.
- Distribution Amount Details: For instance, the abrdn Global Infrastructure Income Fund will distribute $0.2100 per share, while the abrdn Healthcare Opportunities Fund will distribute $0.1800 per share, reflecting the company's efforts to provide stable income.
- Investor Notification: At the end of each calendar year, shareholders will receive a Form 1099-DIV detailing the distribution amounts and their tax treatment, ensuring transparency and aiding investors in tax planning.
- Distribution Policy Risks: The distribution policies of the funds may be modified at any time, which could impact the funds' net assets and market prices, highlighting the importance of risk management in investment decisions.
See More
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- Distribution Payment Announcement: Aberdeen's various closed-end funds will pay distributions on January 12, 2026, to all shareholders of record as of December 31, 2025, demonstrating the company's ongoing commitment to shareholder returns.
- Detailed Distribution Amounts: For instance, the abrdn Global Infrastructure Income Fund (ASGI) will distribute $0.21 per share, reflecting its stable income generation and capital appreciation strategy.
- Transparency in Distribution Policy: Each fund's distribution policy is subject to modification at any time, requiring investors to stay informed to assess future investment returns and risks.
- Tax Information Disclosure: A Form 1099-DIV will be sent annually to shareholders detailing the amounts and composition of distributions, ensuring shareholders understand tax treatment and enhancing transparency.
See More
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Distribution Announcement: Aberdeen Investments U.S. Closed-End Funds will pay distributions on August 29, 2025, to shareholders of record as of August 22, 2025, with some funds paying on September 30, 2025.
Tax and Investment Performance Notes: Shareholders will receive a Form 1099-DIV for tax reporting, and the distribution policy may change, impacting net asset values and investment performance.
See More
Aberdeen Investments Announces Multiple Closed-End Fund Distributions, Up to $0.21 per Share
- Distribution Payment Announcement: Aberdeen Investments' closed-end funds will pay distributions on January 30, 2026, to shareholders of record as of January 23, 2026, with amounts ranging from $0.04 to $0.21 per share, demonstrating the company's commitment to returning value to investors.
- Transparent Distribution Sources: In compliance with the 1940 Investment Company Act, Aberdeen will disclose the sources of distributions to shareholders, including net investment income and capital gains, ensuring investors have a clear understanding of the origins of their payouts.
- Flexible Distribution Policy: The distribution policy for each fund can be modified by the board at any time, indicating that while current distributions are stable, they may be adjusted in response to market conditions, which could impact investor returns.
- Tax Information Disclosure: At the end of each calendar year, Aberdeen will send shareholders a Form 1099-DIV detailing the distribution amounts and their tax treatment, aiding investors in tax planning and ensuring compliance with regulations.
See More
Aberdeen Investments Announces 2026 Distribution Plans for Closed-End Funds
- Distribution Payment Date: Aberdeen Investments' closed-end funds will pay distributions on January 30, 2026, to all shareholders of record as of January 23, 2026, ensuring timely returns for investors and enhancing confidence in the funds.
- Distribution Amount Overview: The funds will distribute amounts ranging from $0.0400 to $0.2100 per share, with the abrdn Global Infrastructure Income Fund offering the highest distribution at $0.2100, reflecting its robust income generation capabilities.
- Transparency in Distribution Policy: At the end of each calendar year, the funds will send a Form 1099-DIV to shareholders detailing the amounts and composition of distributions, enhancing transparency and trust among investors regarding tax implications.
- Investor Risk Advisory: The distribution policy is subject to modification at any time, and the distribution amounts should not be viewed as direct indicators of investment performance, reminding investors to consider market fluctuations affecting the funds' net asset values.
See More
abrdn National Municipal Income Fund to Reorganize into MFS Municipal Income Trust
- Reorganization Plan: The Board of Trustees of abrdn National Municipal Income Fund (VFL) has approved the reorganization into MFS Municipal Income Trust (MFM), aiming to create a larger fund that enhances trading volume and reduces the discount to net asset value over time.
- Shareholder Benefits: Post-reorganization, VFL shareholders will have the opportunity to invest in a significantly larger fund with a targeted annual distribution rate of 6%, potentially increasing their returns.
- Voting Arrangement: Common and preferred shareholders of VFL will vote on the proposal at a special meeting scheduled for March 11, 2026, and if approved, the reorganization is expected to close in the second quarter of 2026.
- Asset Management Scale: As of September 30, 2025, abrdn Investments managed approximately $515 billion in assets, while MFS had about $655.2 billion, and the reorganization is expected to further strengthen their market positions.
See More
Aberdeen Funds Announce January 2026 Distribution Plans
- Distribution Announcement: Aberdeen Investments has revealed that several closed-end funds will pay distributions on January 12, 2026, to shareholders of record as of December 31, 2025, indicating the company's ongoing commitment to shareholder returns.
- Distribution Amount Details: For instance, the abrdn Global Infrastructure Income Fund will distribute $0.2100 per share, while the abrdn Healthcare Opportunities Fund will distribute $0.1800 per share, reflecting the company's efforts to provide stable income.
- Investor Notification: At the end of each calendar year, shareholders will receive a Form 1099-DIV detailing the distribution amounts and their tax treatment, ensuring transparency and aiding investors in tax planning.
- Distribution Policy Risks: The distribution policies of the funds may be modified at any time, which could impact the funds' net assets and market prices, highlighting the importance of risk management in investment decisions.
See More
Aberdeen Funds Announce Distribution Details for January 2026
- Distribution Payment Announcement: Aberdeen's various closed-end funds will pay distributions on January 12, 2026, to all shareholders of record as of December 31, 2025, demonstrating the company's ongoing commitment to shareholder returns.
- Detailed Distribution Amounts: For instance, the abrdn Global Infrastructure Income Fund (ASGI) will distribute $0.21 per share, reflecting its stable income generation and capital appreciation strategy.
- Transparency in Distribution Policy: Each fund's distribution policy is subject to modification at any time, requiring investors to stay informed to assess future investment returns and risks.
- Tax Information Disclosure: A Form 1099-DIV will be sent annually to shareholders detailing the amounts and composition of distributions, ensuring shareholders understand tax treatment and enhancing transparency.
See More
ABERDEEN INVESTMENTS U.S. CLOSED-END FUNDS ANNOUNCE DISTRIBUTION PAYMENT DETAILS
Distribution Announcement: Aberdeen Investments U.S. Closed-End Funds will pay distributions on August 29, 2025, to shareholders of record as of August 22, 2025, with some funds paying on September 30, 2025.
Tax and Investment Performance Notes: Shareholders will receive a Form 1099-DIV for tax reporting, and the distribution policy may change, impacting net asset values and investment performance.
See More
