Blackrock Resources & Commodities Strategy TrustNYSE: BCX

Buying at big discounts allows you to get more value for less cost. We can collect great income now and enjoy when the discount closes. Bombard your expenses with a torrential rain of income.

The value of the dollar has halved in the past 30 years. 2020 gave us the start of a rapid inflationary period; its impacts are still reverberating in the average person's wallet. We look at how to solve the problem with high-quality income.

We aim to maximize the value of our investments to increase income and total returns. We recommend two options that offer potential yields of up to 8%.

The current portfolio of the BlackRock Resources & Commodities Strategy has over 22% upside potential on consensus price targets for 2024. However, fundamentals seem weak to support market multiple expansion with EPS growth of -2% in 2024 and 8% in 2025. The current MDP that provides an 8% distribution yield is not funded by holding dividends nor call options writing and may dip into capital.

BlackRock Resources & Commodities Strategy Trust is an equity closed-end fund that invests in commodity-focused stocks. BCX currently has a significant 14% discount to its Net Asset Value, providing an opportunity for investors to gain exposure to its portfolio at a reduced price. BCX offers a substantial 7.00% dividend yield, which could become even more attractive if interest rate cuts materialize. Additionally, the fund's weighted consensus estimates suggest a potential upside of 19%.

BlackRock Resources & Commodities Strategy Trust is a closed-end fund that focuses on high current income from stocks in the commodity and natural resources industries. BCX has historically outperformed a passive ETF, adding 1-2% in active returns. However, I am concerned about a weak global economy, particularly in commodity-hungry China. Therefore, recommend investors stay on the sidelines for now.

2 Top Dividends To Buy In February, Yields Up To 7.8%

Retirement requires a steady stream of income, no matter what storms are coming. Commodities are being left behind, a poor choice by many. Reframe your understanding and lock up outstanding income.

BlackRock Resources & Commodities Strategy Trust is a closed-end fund focused on non-real estate hard assets such as energy, mining, and agriculture sectors. The fund has underperformed in terms of total returns over the last decade. BCX currently trades at a solid discount to NAV and offers a big yield.