Nuveen Quality Income Municipal Fund Inc. (NYSE:NQU)

Like PMF, this closed end fund invests substantially all of its assets in a diversified portfolio of tax-exempt municipal obligations.

But unlike PMF, the credit quality with this fund is higher. In fact, the average credit quality within the fund is a solid AAA. Only 13% of the portfolio is rated at BBB or below. This fund, in other words, is as safe as it gets.

The best part is it is currently trading a 7.24% discount to its net asset value (NAV) with a taxable equivalent yield of 7.85% for taxpayers in the 33% bracket.

And while that’s not quite as good as PMF, the credit quality is considerably better, meaning less risk.

The fund pays monthly dividend and is well diversified.

Its top five states in terms of its holdings are as follows:

• Texas………………..11.4%
• New York……………10.9%
• Illinois…………….…9.6%
• California……………7.7%
• Washington………….6.5%

Buy the Nuveen Quality Income Municipal Fund Inc. (NYSE:NQU) at or near $13.11.

Cheers,

Jack Aubrey
Senior Equity Analyst, Residual Income Report