Increase in Muni Bond CEF Dividends

One of the best investment areas over the last few months has been municipal bond closed-end funds. There are several reasons for this: These funds often use low cost leverage to boost returns. The funds borrow at an average cost of only 0.52% and invest the proceeds in municipal bonds paying over 4%. This allows some of these funds to have distribution yields of well over 6%., The low leverage costs are expected to last for at least another year. As regulated investment companies, muni closed-end funds must distribute at least 90% of income to shareholders. Many funds have had to raise their dividends to keep up with the increasing net earnings.. Here are recent monthly dividend increases for some of the Blackrock leveraged muni bond closed-end funds:... Read more