These 9% Dividends Are Usually “Millionaires Only.” No More.

It’s Tax Day—the perfect time to talk about one of our favorite income plays: municipal bonds. Don’t listen to anyone who tells you “munis” are boring. They’re anything but: It’s easy to grab 5%+ yields from them. And because munis’ income is tax-free for most Americans, that 5% is worth more—in some cases a lot more—to us. They’re stable , too. Consider how much better you’d have slept at night if you held munis during the 2022 nightmare, when they held up much better than stocks: 2022 Put Muni Bonds’ “Crash Resistance” on Display Truth is, yearly declines of any sort are unusual for munis, which tend to deliver 5% to 6% annual total returns in the long run—and that’s before their tax benefits, which are, quite frankly, game-changing.… Read more