Abrdn National Municipal Income Fund Boosts Monthly Distribution by 20%

The Abrdn National Municipal Income Fund (NYSE American:VFL) has announced a significant 20% increase in its monthly distributions. Starting with the payment due on April 30, 2024, the distribution per share will rise from $0.0375 to $0.0450. This decision symbolizes the confidence of the Fund's management in maintaining a high distribution level for at least the next year, barring unforeseen market shifts. The increased distribution rate is considered sustainable based on the Fund's current income forecasts.

This adjustment elevates the Fund's distribution rate on its Net Asset Value (NAV) from 3.7% to 4.5%. Similarly, the distribution rate based on the share price as of February 29, 2024, jumps from 4.4% to 5.3%. Importantly, this increase follows a prior enhancement in December 2023, marking a cumulative rise of approximately 38.5% since Abrdn took over management. Notably, the Fund's NAV performance ranks in the top quintile of its category over the past three months.

The Fund's strategy to decrease the weight of below-investment-grade securities while boosting the earnings yield has strengthened its monthly earnings and credit quality. This distribution policy aims for stable, sustainable cash flow for shareholders, notwithstanding the inherent market risks and the fact that past performance doesn't guarantee future results.