BST: Overrated, With Hidden Fundamental Flaws
An 8%+ yield may look attractive initially, but fundamental flaws emerge upon reviewing the fund's financial statements and distribution history. Management has incurred losses on options writing. Return-of-capital distributions and a negative CAGR indicate subpar portfolio management practices. BST has underperformed in terms of capital appreciation compared to other tech-focused ETFs like QQQM. Better alternatives exist, such as STK.
Need Income? 2 Picks To Pay Your Bills, Yields Up To 8%
Technology evolves rapidly, presenting both opportunities and challenges for investors. Tech companies tend to grow the fastest, but they also fail the fastest; gullible investors can quickly be outpaced, overwhelmed, and burned. We discuss two income-focused picks with up to 8% yields to benefit from all the tech innovation and growth.
BST: A Growth Fund For The Income Investors, 8.3% Yield
BST is a closed-end fund that primarily invests in Science and Technology companies that have the potential to provide rapid and sustainable growth. Besides growth potential, currently, the fund yields an attractive 8.3%, making it a good investment for income investors. We would rate the fund as a 'hold' for existing owners and a 'buy' for new investors. However, the new buyers should use dollar-cost-averaging to avoid the risk of buying near the top.
BST: Get Paid An 8.4% Yield For Owning Tech Stocks
BlackRock Science and Technology Trust offers tech exposure with an 8.4% yield through an option writing strategy, focusing on tech stocks with AI growth potential, including Nvidia. The fund has a triple mandate: current income, short-term, and long-term capital gains, achieved by selling call options. Trading at a 5% discount to NAV, BST presents an attractive buying opportunity, offering potential capital returns and a healthy yield.
BST: 8.5% Yield, Historically Deep Discount
The BlackRock Science and Technology Trust offers an attractive 8.5% yield by investing in tech and science assets, utilizing covered call options. BST's portfolio is heavily weighted in semiconductors and large-cap stocks, with a significant portion overwritten with covered call options. BST's 2024 distributions were entirely from long-term capital gains, with no Return of Capital, offering a tax deferral advantage.
BST's Widening Discount Is Attractive As The Outlook Brightens
BST is a closed end fund that invests in public large cap tech companies and a small portfolio of private, pre-public investments. We discuss critical changes to BST over the past six months, including performance relative to sister fund, BSTZ. Investors seeking stable dividends and large-cap exposure should consider BST, while those preferring private equity and small-cap investments might opt for BSTZ.
BST: Trades At Discount To NAV, Could Get A Boost From Rate Cuts And Nvidia
BST offers a high single-digit yield and consistent income, despite underperforming the market over the past 5 years. Rate cuts and strong Nvidia earnings could boost BST, which trades at a -6.24% discount to NAV. BST's portfolio, with significant holdings in NVDA and small caps, stands to benefit from a lower-rate environment.
BST: Interest Rate Cuts Serve As Positive Catalyst
BST provides high-yielding income from the tech sector, offering a sizeable dividend yield of 8.7%. The fund currently trades at a discount to net asset value of 6.7%, presenting an attractive opportunity for investors to accumulate shares. BST's price movement is influenced by interest rates, with potential future rate cuts serving as a positive catalyst for the fund's underlying assets and NAV growth.
BST: Tech With An Attractive Monthly Distribution
BST has been performing better but is still showing losses over the last three years. The fund is focused more on relatively larger cap technology companies, but has a sleeve of private investments as well. BST offers a distribution yield of 8.29%, which is generated through capital gains in the underlying portfolio and the covered call strategy.
BST: A Strong Cocktail Of Small Caps, AI, And Dividends
Finding an investment that provides both growth and income can be challenging, especially one that holds the big AI players. As a solution, BlackRock Science and Technology Trust can provide both capital appreciation and monthly income. Moreover, the BST CEF should benefit from the appreciation in small-cap stocks as the Federal Reserve loosens monetary policy.
BST: Covered-Call Tech Has Performed Well, Eyeing Risks
The BlackRock Science and Technology Trust is a top-performing closed-end equity fund with a unique approach to investing in tech stocks. The fund's performance is heavily dependent on the future interest rate environment and potential shifts in investor preferences with the US election in the offing. BST offers exposure to current and emerging leaders in the technology sector, but uncertainties surrounding rates and market trends warrant a hold rating.
These 8% Dividends Are The Wallflowers Of The Investment World
I've dedicated my career to closed-end funds (CEFs) because in a way, these high-yield investments saved my life: Using these funds to get an 8% income stream from my portfolio gave me the confidence I needed to quit my academic job well over a decade ago.
