NXJ: Municipal Bond Fund Designed For New Jersey High Earners
- Nuveen New Jersey Quality Municipal Income Fund (NXJ) is rated Strong Buy for NJ residents and Buy for others due to its tax-free status and 7.6% yield.
- The fund's portfolio focuses on high-quality, tax-exempt municipal bonds, with 80% in investment-grade securities and minimal exposure to non-investment-grade bonds.
- NXJ's effective duration of 12.7 years and 40% leverage ratio provide significant investment exposure, making it attractive when interest rates fall.
- With a recent payout increase and a current discount of nearly 9%, NXJ offers a compelling opportunity for high earners in high-tax states.
- One concern investors need to track is the level of ROC needed to meet the increased payouts; currently over 60%.
iQoncept/iStock via Getty Images
Introduction
I noticed that the Nuveen New Jersey Quality Municipal Income Fund (NYSE:NXJ) has not been reviewed since mine in 2022 gave it a Buy rating based on its to-date results and the size
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
