BlackRock Science and Technology Trust offers high technology exposure and a 7% yield via a covered call strategy. BST's concentrated portfolio includes major AI players like NVDA, MSFT, and AAPL, benefiting from surging CapEx in the tech sector. The fund trades at a 4.95% discount to NAV, presenting a potential value opportunity given its strong historical returns and monthly distributions.
I like to build multiple income streams for lasting retirement flexibility. Certain essential sectors don't pay dividends; but I find ways to extract my cut. We discuss two picks offering yields of up to 11%.
Dividends or Capital Gains? You can choose both. Actively managed funds can help secure steady income from sectors that don't pay dividends. We discuss our picks to draw recurrent cash flows from AI and Energy.
By now you've no doubt heard the argument that AI is a bubble, and there's no way Big Tech will make a significant profit from it, given the massive amounts of cash they've already piled in.
BlackRock Science and Technology Trust offers a compelling blend of high yield (7.8% annual) and growth exposure to leading tech names, trading at a 6% NAV discount. The fund's robust recovery post-2022 and strong portfolio composition support a moderately bullish 3-6 month outlook, despite historical volatility. Covered call strategy enhances income but may cap upside; part of the payout is return of capital, warranting caution on long-term sustainability.
Closed-end funds can help income-focused investors, as in this wrapper, they can often provide higher relative distributions. One way to provide higher distributions is through utilizing a call writing strategy, where they can generate option premiums. Monthly distributions are also appealing to these income investors, and there are a number of opportunities in the CEF wrapper that provide that.
BST offers high-yield tech exposure, focusing on magnificent 7 stocks with strong AI-driven growth potential, especially Nvidia, Microsoft, and Broadcom. The CEF uses a covered call strategy, generating recurring option income distributed monthly to investors, enhancing total returns. The BlackRock Science and Technology Trust is heavily overweight magnificent 7 stocks, which are set to benefit from accelerating AI-led CapEx spending in the years ahead.
BST trades at a -4.39% discount to its NAV while having a distribution yield that exceeds 8% which is an opportunity for investors. BST's top-10 holdings have an average of 42.50% EPS growth on the horizon over the next 2 fiscal years from the 8 companies that are public. As the Fed lowers rates, the cost of capital will decline and this will be bullish for many of the investments within BST's portfolio.
The BlackRock Science and Technology Trust is a unique fund that offers investors access to high-tech, high-risk firms alongside a slew of private market investments. The fund employs a covered call overlay, generating income in excess of 8% p.a., and manages its distributions so that they are consistent and reliable. Investors need to consider the significant risks with the fund, such as the way its managers intentionally obfuscate the fund's private market holdings.
BlackRock Science and Technology Trust offers tech exposure with a focus on income, providing a starting dividend yield of 8.8%, despite recent price declines. BST's option strategy on 30-40% of assets generates income but caps growth, making it suitable for income-focused investors rather than those seeking maximum total return. BST trades at a 3.7% discount to NAV, making it an attractive accumulation opportunity for long-term investors optimistic about the tech sector's future.
BlackRock Science and Technology Trust offers concentrated tech exposure and income generation through a call option strategy, with a strong performance history. BST's portfolio includes leading U.S. tech firms like Nvidia, Microsoft, and Apple, with a 10-year NAV return of 332.5% and a 1-year return of 24.11%. The fund provides a 9% forward dividend yield, trading at a 4% discount to NAV, indicating potential undervaluation and a buying opportunity.
BlackRock Science and Technology Trust, a tech-focused CEF, is under pressure due to high valuations and market volatility, with a significant way to go before being considered 'cheap'. The fund's premium/discount to NAV is expected to widen, consistent with historical trends during tech bear markets, potentially reaching a -5% to -10% discount. Despite a well-covered distribution, future gains are uncertain as the fund may rely on return of capital amid decreasing NAV and market pressures.