After what feels like forever, the yield curve has reverted to its normal direction, with longer-dated bonds now yielding more than shorter-dated ones. For income seekers, this is significant, as it means the days of finding 5%+ yields in short-term securities are now.
But that doesn’t mean that there aren’t good income opportunities out there — especially when you factor in taxes.
Right now, and thanks to the yield curve returning to normal, long-dated municipal securities could offer some of the best total return elements of any fixed-income asset class around. The ability to generate high tax-free yields alongside capital gains makes them a compelling choice for investors.
dividend.com
by Aaron Levitt
Oct 28, 2024