In addition to diversifying holdings, most municipal bond mutual funds offer an option for dividend reinvestment, so returns can compound over time.

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Note that PETM is expected to go ex-dividend next week, which will impact option prices.

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But given how the recent downturn has slashed valuations, and given that stocks of strong companies tend to fare far better than bonds during inflationary climates, I think these big dividend-payers are a more attractive option right now for those with long-term time horizons.

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The Company also plans to offer shareholders the option of receiving payment in the form of shares (dividend in kind).

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Mr. Jones points to WisdomTree Large Cap Dividend, which has been yielding 2.75%, as one option.

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At current prices, I believe a portfolio of dividend-paying stocks, REITs, and MLPs with high and rising cash payouts is the most sensible option for most investors.

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