PZA tracks investment-grade U.S. municipal bonds exempt from federal income tax and shielded from the Alternative Minimum Tax, and it has paid 217+ consecutive monthly distributions since November 2007. With a tax-free yield around 3.9%, PZA competes with taxable Treasuries that yield more on paper but less after taxes. The question is whether that monthly check is durable.
Municipal bonds have made their opening move. After months of being labeled "cheap," the tax-exempt market responded with a rally across the full curve. Yields dropped, ratios tightened, and early investors saw results. But if you missed the first wave, don't worry. There's still opportunity ahead, especially for those focused on what's next. Munis may not grab headlines, but their quiet consistency and tax advantages could make them a smart choice for investors seeking stability and income, especially in today's market.
