Stocks are rising, so it might be time to consider other investments like bonds or REITs to diversify and increase dividends. Municipal bond CEFs offer tax benefits and high yields, with one fund providing an 8% yield. However, muni bonds have underperformed recently, but historically have shown strong returns during market downturns. An overpriced California muni-bond CEF is at risk of losing value due to a lack of market response. Consider buying undervalued muni-bond CEFs like the abrdn National Municipal Income Fund for high yields and diversification. Now may not be the best time to invest in munis, but deep-discounted CEFs in other areas like blue chip stocks, corporate bonds, and REITs are attractive options for diversification.

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