Nuveen Select Tax Free Income Portfolio Announces Ex-Dividend Date on October 15, 2025

Introduction

Nuveen Select Tax Free Income Portfolio (NXP) is a municipal bond fund managed by Nuveen, a leader in fixed income and alternative asset management. Known for its steady dividend stream and tax-advantaged structure, NXP follows a disciplined dividend policy consistent with its objective of generating tax-free income. The fund typically offers a stable and predictable yield, aligning with the broader municipal bond fund segment's conservative characteristics.

Against a backdrop of mixed market sentiment, with bond yields stabilizing and investor appetite for tax-free income remaining strong, NXP's latest dividend announcement arrives at a strategically favorable time. The ex-dividend date of October 15, 2025, is expected to have a moderate impact on the share price due to the fund's high liquidity and income-generating profile.

Dividend Overview and Context

On the ex-dividend date of October 15, 2025, Nuveen Select Tax Free Income Portfolio will pay a cash dividend of $0.0535 per share. Investors who purchase the stock on or after this date will not be entitled to this distribution, as it will be issued to shareholders of record as of October 14, 2025.

The share price is expected to adjust downward by roughly the dividend amount on the ex-dividend date. However, given NXP’s strong liquidity and consistent performance, the adjustment is typically absorbed quickly by the market. This aligns with the fund’s historical behavior of maintaining stable pricing dynamics around dividend events.

Backtest Analysis

A historical backtest of NXP’s performance around its dividend events reveals a strong and consistent pattern of price recovery. Over 18 dividend events, the fund has shown an average recovery duration of just 2.65 days after the ex-dividend date. Additionally, there is a 94% probability of recovery within 15 days, indicating robust demand for the shares and investor confidence in the fund's performance.

These findings suggest that the ex-dividend price drop is often temporary and quickly reversed, supporting the view that investors should remain in the fund through the ex-dividend date to benefit from the typical post-dividend rebound.

Driver Analysis and Implications

According to the latest financial report, NXP reported a total revenue of $32,960,162 and net income of $9,543,995, with a basic earnings per share of $0.1940. The fund’s operating income and net income figures suggest a strong ability to sustain and possibly increase its dividend distribution in the future.

With a total expense of $1,660,255 and an operating income of $31,299,907, the fund is demonstrating robust operational efficiency, which supports the sustainability of its dividend policy. These internal financial fundamentals, combined with favorable macroeconomic conditions for municipal bonds, position NXP favorably for continued performance and investor confidence.

Investment Strategies and Recommendations

• Short-Term Strategy: Investors holding NXP for dividend capture should remain invested through the ex-dividend date of October 15, 2025, to collect the $0.0535 per share distribution while benefiting from the typical post-dividend recovery pattern observed in the backtest.
• Long-Term Strategy: For investors seeking consistent income, NXP remains a compelling option within a diversified portfolio, particularly for those in higher tax brackets seeking tax-free returns. Its predictable yield and solid financial performance make it suitable for long-term, income-focused investors.

Conclusion & Outlook

The October 15, 2025 ex-dividend date for Nuveen Select Tax Free Income Portfolio presents a clear opportunity for investors to participate in a stable and well-managed municipal bond fund. With a robust financial profile and historically strong post-dividend recovery, NXP remains a dependable option for investors seeking tax-free income.

Looking ahead, investors should monitor the fund's next earnings report, expected in the coming months, for further insights into its financial health and future dividend sustainability.