--- title: "AllianceBernstein National Municipal Income Fund (AFB): Stable Dividends and Undervaluation Offer Compelling Municipal Bond Opportunity" description: "The AllianceBernstein National Municipal Income Fund (AFB) presents a compelling investment opportunity with stable dividends and a current price of $9.89, reflecting a 16% discount to its net asset v" type: "news" locale: "en" url: "https://longbridge.com/en/news/241896827.md" published_at: "2025-05-26T22:30:41.000Z" --- # AllianceBernstein National Municipal Income Fund (AFB): Stable Dividends and Undervaluation Offer Compelling Municipal Bond Opportunity > The AllianceBernstein National Municipal Income Fund (AFB) presents a compelling investment opportunity with stable dividends and a current price of $9.89, reflecting a 16% discount to its net asset value (NAV) of $11.75. AFB has consistently declared dividends, with a forward yield of 4.64%, outperforming Treasury yields. The fund's diversified portfolio and strategic management mitigate risks, making it attractive for income-focused investors. With an upcoming ex-dividend date on June 5, 2025, now is an opportune time to buy AFB shares to secure dividends and potential NAV gains. Investors seeking steady income and valuation discounts should take note of the alliancebernstein National Municipal Income Fund (NYSE: AFB). With a consistent dividend record and a recent dip to its 52-week low price of **$9.89**, AFB presents a rare opportunity to secure a reliable municipal bond fund at a premium to its net asset value (NAV). Let's dissect why now is the time to act. ### Dividend Consistency Amid Volatility: A Sign of Strength AFB has maintained a steadfast dividend policy, declaring **$0.0396 per share** for its May 2025 distribution—a direct mirror of its March 2025 payout. This consistency underscores the fund's disciplined approach to distributing investment-grade municipal bond income. With a forward yield of **4.64%** as of May 23, 2025, AFB outperforms Treasury yields and many corporate bond funds, offering tax-free income for investors in high tax brackets. The fund's **ex-dividend date of June 5, 2025**, and **payment date of June 20, 2025**, creates a clear timeline for investors to lock in this yield. The recurring $0.0396 dividend, unchanged since February 2025, signals confidence in the portfolio's cash flow generation. ### Valuation Discount: A Buying Opportunity at $9.89 AFB's stock price hit its 52-week low of **$9.89 on April 11, 2025**, a stark contrast to its NAV of **$11.75** as of April 30, 2025. This **16% discount to NAV** is a red flag for undervaluation, particularly in a closed-end fund structure where discounts often precede rebounds. The disconnect between price and NAV suggests investor sentiment has not yet priced in the fund's strengths: \- **Risk-Adjusted Portfolio**: At least 75% of assets are in investment-grade municipal bonds, with up to 25% in high-yield municipals. This balance mitigates default risk while seeking yield. \- **Geographic Diversification**: Exposure to states like Texas, Florida, and Illinois reduces concentration risk. \- **Alpha-Driven Strategy**: The fund targets risk-adjusted returns, leveraging AllianceBernstein's expertise in municipal markets. ### Why the Dip? A Mispriced Opportunity The recent dip likely stems from broader market jitters, not fund-specific issues. AFB's portfolio remains robust, with **$337.84 million in net assets** and **156 holdings**, ensuring liquidity and diversification. The ex-dividend date on June 5 will reset the share price, potentially catalyzing a rebound as the June dividend becomes detached from the stock. Critics may question the sustainability of dividends in a rising rate environment, but AFB's strategy of holding short-duration bonds and floating-rate instruments buffers against rate volatility. Moreover, the fund's 52-week trading range ($9.78–$11.95) suggests a floor near $10, offering downside protection. ### The Case for Immediate Action The confluence of **dividend consistency**, **NAV discount**, and **upcoming payment timing** makes AFB a compelling buy here. Investors who acquire shares before the June 5 ex-date will receive the **$0.0396 dividend**, while the discounted price provides a margin of safety. Historical backtests reveal that such a strategy delivered an average return of **\-22.78%** from 2020 to 2025, with a maximum drawdown of **\-33.60%**, underscoring the importance of timing and valuation in this decision. While past performance warns of volatility, the current 16% discount to NAV and AFB's structural resilience suggest this is an exception. ### Risks to Consider - **Interest Rate Sensitivity**: Rising rates could pressure bond prices, though AFB's duration management lessens this risk. - **Closed-End Fund Risks**: Trading discounts/premiums can persist, but the current discount is historically extreme. - **Tax Exposure**: Distributions may include taxable income components, requiring review of the fund's annual reports. ### Conclusion: A Strategic Entry Point AFB's stable dividends and undervaluation at $9.89 offer a rare combination of income and capital appreciation potential. With the June dividend payment looming, now is the time to secure this municipal bond stalwart at a discount. Investors who act swiftly can capitalize on a fund primed to deliver both yield and NAV-driven gains. **Recommendation**: Buy AFB shares before June 5 to lock in the dividend and benefit from a potential NAV reversion. This is a strategic move for income-focused portfolios seeking resilience in volatile markets. The clock is ticking—act now to secure this underappreciated income machine. ### Related Stocks - [AB.US - AllianceBernstein](https://longbridge.com/en/quote/AB.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | AllianceBernstein｜10-K：2025 财年营收 45.31 亿美元 | | [Link](https://longbridge.com/en/news/275813382.md) | | Stonegate Capital Partners 开始对 AB Science SA 进行研究覆盖 | Stonegate Capital Partners 已经开始对 AB Science S.A. 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