Grab 2 Cheap Funds with 7.5%+ Tax-Free Dividends

Municipal bonds issued by state and local governments offer tax-free dividends, typically 200 basis points above 10-year Treasury yields. Two closed-end funds, the Invesco California Value Municipal Income Trust (VCV) and the BlackRock California Municipal Income Trust (BBF), provide yields of 7.5% and higher, respectively. These funds offer a tax-free dividend and a human manager to select the best new bonds.