This Unsung Tech Dividend Is Cheaper Than It's Been In A Decade
You've no doubt heard the old Wall Street saw: “Sell in May and go away.”
STK: Still Has Room To Run But Isn't As Attractive
Columbia Seligman Premium Technology Growth Fund (STK) offers investors a way to get exposure to AI growth, while collecting a high yield. STK offers a dividend yield of 4.8% but I expect a large year-end supplemental distribution to be issued. A lot of STK's recent growth has come form Bloom Energy (BE). Bloom is aligned for continued growth so STK may not rotate out of this position.
STK Isn't A Typical Covered-Call Fund, It's Controlled Aggression In Tech
Columbia Seligman Premium Technology Growth Fund offers a dynamic tech-income blend, with active management and a current Buy rating for core tech-income portfolios. STK's portfolio is heavily tilted toward semiconductors and equipment, with low SaaS/hyperscaler exposure, reflecting current market demand and pricing strength. The fund's covered call strategy is actively managed (0-90% coverage), balancing income generation and upside capture, and currently covers about 50-60% of the portfolio.
STK: Tax-Efficient Income From The Growth Of AI
Columbia Seligman Premium Technology Growth Fund remains a strong buy, trading at a rare 3.97% NAV discount despite robust 12-month total returns of 31.7%. STK offers a compelling 6.8% dividend yield, supported by dynamic covered call strategies and exposure to AI-driven technology leaders, including Bloom Energy. Option overlay strategies enhance income and buffer volatility, but heavy tech sector concentration exposes STK to downside if market sentiment shifts.
