NXP: Too Much Uncertainty To Recommend

Retired InvestorInvesting GroupFollow5ShareSavePlay(7min)CommentsSummaryNuveen Select Tax-Free Income Portfolio faces a proposed merger with Nuveen California Select Tax-Free Income Portfolio and Nuveen New York Select Tax-Free Income Fund, which I oppose due to yield and tax implications.NXC and NXN yield less than NXP, potentially diluting NXP's yield post-merger and introducing state tax liabilities for single-state holders.NXP's larger size and national exposure offer diversification, but merging may lower future payments due to lower WA coupons in NXC and NXN.Municipal bonds, including NXP, remain attractive for high-tax-bracket investors, especially with federal tax rate certainty until 2029. huffychic/iStock via Getty Images Introduction Okay, maybe not totally tax free, but it was a nice photo. Last summer, Nuveen announced their desire to merge both Nuveen California Select Tax-Free Income Portfolio (NXC) and Nuveen New York SelectThis article was written byRetired Investor9.15K FollowersFollowRetired Investor has been investing since the 1980s and has a background in data analysis and pension fund management. He writes articles to help others prepare for retirement by investing in CEFs, ETFs, BDCs, and REITs. He is a long only investor and shares strategies for trading options with a focus on cash-secured-puts. He is a contributing author to the investing group iREIT®+HOYA CapitalThe group helps investors achieve dependable monthly income, portfolio diversification, and inflation hedging. It provides investment research on REITs, ETFs, closed-end funds, preferreds, and dividend champions across asset classes. It offers income-focused portfolios targeting dividend yields up to 10%.Learn more.Analyst’s Disclosure:I/we have a beneficial long position in the shares of NXP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.