Tax yields investing in high-yield corporate paper carries elevated risk but can offer compelling returns. Junk bonds yield around 7.5%, but actual after-tax return varies significantly, requiring precise yield-to-call analysis. That capital spending should give Western Midstream the fuel to increase its already high-yielding distribution at a low-to-mid single-digit annual rate. The company can grow its payout even faster if it completes acquisitions. It's currently working to close its $2 billion purchase of Aris Water Solutions , which will further diversify its business and boost its fee-based cash flows, giving it even more fuel to grow its distribution. Unrated bonds require additional resources to determine relative value, but the rewards for investors can be well worth the effort. Also considering the variety of types of issues – from retirement communities to hospitals to charter schools – delivering a portfolio of high yield muni bonds is particularly suited to managers with deep credit research capabilities and experienced portfolio managers. The iShares High Yield Muni Active ETF (HIMU) can offer both advantages. Tax yields investing strategies in infrastructure funds are benefiting from bipartisan capital investment programs. Yield spreads between taxable and tax-free instruments remain attractive, particularly for investors in higher IRS brackets.