Eaton Vance Municipal Income Trust Offers Tax-Free Yield

CEF provides 5.9% annual yield, 8-9% taxable equivalent for high-income investors

Apr. 4, 2026 at 2:13pm

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Eaton Vance Municipal Income Trust (EVN), a closed-end fund, currently offers a 5.9% annual yield paid monthly, which translates to an 8-9% taxable equivalent yield for investors in higher tax brackets. The fund invests in investment-grade municipal bonds that are exempt from regular federal income tax, making it an attractive option for income-seeking investors.

Why it matters

With interest rates rising, investors are seeking fixed-income products that can provide a reliable stream of tax-advantaged income. Municipal bond funds like EVN offer a way for high-net-worth individuals to generate yield while minimizing their tax burden.

The details

EVN, managed by Eaton Vance, a leading asset manager, invests primarily in investment-grade municipal bonds. The fund's diversified portfolio and professional management aim to deliver steady monthly distributions to shareholders. Investors in higher tax brackets can benefit from the tax-exempt nature of the fund's underlying holdings, potentially achieving an 8-9% taxable equivalent yield.

  • Eaton Vance Municipal Income Trust has been trading on the New York Stock Exchange since its inception in 1998.

The players

Eaton Vance Municipal Income Trust

A closed-end fund that invests primarily in investment-grade municipal bonds, providing a tax-advantaged source of income for high-net-worth investors.

David A. Johnson

The founder and principal of Endurance Capital Management, a New Jersey-based investment firm. He has over 30 years of experience in investing and holds a Master of Science degree in Finance and an MBA.

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What they’re saying

“I rate Eaton Vance Municipal Income Trust (EVN) a buy for income investors in the higher tax brackets, looking for bonds that are exempt from regular federal income tax.”

— David A. Johnson, Founder and Principal, Endurance Capital Management

The takeaway

For high-net-worth investors seeking a reliable source of tax-advantaged income, Eaton Vance Municipal Income Trust (EVN) offers an attractive 5.9% annual yield, with the potential for an 8-9% taxable equivalent yield due to the fund's investment in federally tax-exempt municipal bonds.