seekingalpha.com · Oct 29, 2025
NXJ: Impressive Yield, But More Than Half Funded By Return Of Capital
Nuveen New Jersey Quality Municipal Income Fund is a closed-end fund focused on high-quality, long-maturity New Jersey municipal bonds. NXJ's distribution yield is inflated by a significant return of capital, with the real income yield at 3.57%, making it less attractive for most investors. The fund's strategy of prioritizing high credit quality and long tenor exposes investors to interest rate risk without sufficient compensation in after-tax income.

