This 5.5% Tax-Advantaged Dividend Soared Overnight (How It Could Happen Again)

Every now and then in income investing, we get a sweet setup where a “boring” high yielder absolutely soars—practically overnight. I recently saw such a scenario play out with a closed-end fund (CEF) called the BlackRock Municipal Income Fund (MUI) . I bring it up now because what happened with MUI has a lot to teach us about how we can get stock-like gains from a so-called “boring” income play like this. Despite its sleepy-sounding name, MUI is what I consider a “triple threat” investment because it can pay us in three different ways: Its dividend , which yields a high 5.5% and has been remarkably stable, even throughout the low-rate 2010s. … Read more