Nuveen California Quality Municipal Income Fund

NAC

Market cap $1.69B

NAC remains an attractive investment for California residents seeking tax-exempt income and capital appreciation potential. My previous 'buy' rating on NAC proved timely, as the fund delivered both strong income and capital gains. The fund's dual objective—tax-exempt income and portfolio value enhancement—continues to support its appeal in the current market.

NAC is a closed-end fund focused on California municipal bonds, offering tax-free income for high-income California residents. The fund's yield is attractive, especially after accounting for tax-equivalent yields, but nearly half of distributions are return of capital, not true income. This structure only benefits those specifically wanting to convert capital into income, a niche group among high-tax Californians.

Evaluating Nuveen California Quality Municipal Income Fund as a "buy" due to its widened discount to NAV and improved outlook. The tax equivalent yield on this fund is significant, especially for high-income residents of California. The fund's recent 5% drop presents a buying opportunity, justifying a more positive outlook heading into the new year.

I previously recommended NAC in June, anticipating a muni sector rebound, which has proven accurate. Going forward, I think gains will be more modest. The fund offers value for investors seeking tax-exempt income if they are in higher tax brackets. NAC has seen its discount to NAV narrow and is utilizing a significant portion of return of capital to pay its distribution. These two attributes justify a less bullish rating now.

I continue to view munis as a reasonable equity hedge and see an opportunity in California munis in particular. NAC has recently seen a sharp income boost and is managed by Nuveen, a popular player in the muni market. The fund's discount and underlying holdings also make for supporting buy factors at this moment.

NEW YORK--(BUSINESS WIRE)--Several Nuveen closed-end funds have declared distributions. These funds represent investment strategies for investors seeking diversified sources of cash flow to prepare for and sustain their retirement income needs. For further information regarding fund distributions, including earnings, undistributed net investment income, and notices, please visit www.nuveen.com/cef. Additionally, several funds have announced distribution increases of up to 71%. The distribution.

Markets were flat, but upcoming events like the jobs report, PMIs, and ECB meeting are important.

NEW YORK--(BUSINESS WIRE)--Nuveen Closed-End Funds today announced that the Board of Trustees of the Funds has approved the regular monthly and quarterly distributions. In addition, the Board of Trustees has approved updated distribution polices described below under “Monthly & Quarterly Distributions” for The Nuveen Preferred & Income Opportunities Fund (NYSE: JPC), Nuveen Preferred and Income Term Fund (NYSE: JPI), Nuveen Variable Rate Preferred & Income Fund (NYSE: NPFD), Nuveen.

The Nuveen California Quality Municipal Income Fund is a closed-end fund trading at a discount to net asset values of around 13.88%. The NAC fund focuses on municipal securities in California, which are typically not taxed like regular income in California or by the federal government. The fund has a high leverage ratio and interest rate risk, but activist funds on the shareholder record may help narrow the discount to net asset value.