BlackRock Health Sciences TrustNYSE: BME

BlackRock Health Sciences Trust offers exposure to healthcare companies and employs a covered call strategy to generate option premiums to help support the distribution. The latest tender offer measurement period for BlackRock discount management programs has come to a close, and BME made the list, but it was close this time. The fund's 6.15% distribution yield might not be the most exciting, but it is one of the most consistent and steady you'll find in the CEF space.

BME has delivered solid long-term returns since its 2005 launch, earning positive ratings from Seeking Alpha analysts, with most recent articles rating it a Buy or Strong Buy. The trust has a relatively high expense ratio and has experienced significant volatility related to trading levels relative to NAV. BlackRock recently announced a tender offer that will allow 2.5% of the fund's units to be repurchased at 98% of NAV.

BlackRock Health Sciences Trust (BME) offers exposure to the healthcare space while also utilizing a covered call strategy. BME's discount has narrowed since our last update but remains attractive, with the potential for attractive returns going forward. BME's distribution yield may be more modest than other CEFs, but that has helped it boast of never having to cut the regular distribution and helped it provide some capital.

BlackRock Health Sciences Trust trades at an attractive discount to net asset value. The dividend yield of 6.1% remains supported from net investment income. Some weakness revolves around the use of return of capital, however. Future interest rate cuts may serve as a price catalyst. Inflation continues to cool while the unemployment rate ticks upward.

B&M European Value Retail SA (LSE:BME), the discount retailer, saw its sales edge higher in the first quarter helped by new store openings and volume growth. Group sales increased by 2.4%, reaching £1,345 million for the 13-week period ending 29 June 2024.

BlackRock Health Sciences Trust is a healthcare sector-specific closed-end fund that invests in a fairly diversified portfolio of common stocks in the healthcare sector. It currently provides a reasonable yield of 6.3% plus an attractive discount of close to -8% (below NAV). The BME closed-end fund has a very decent long-term record of nearly 19 years, matching and even exceeding the performance of the S&P 500. However, the recent near and midterm performance has been lackluster.

B&M European Value Retail SA (LSE:BME) shares have tumbled more than 6% after it posted what analysts said was a “curious” set of full-year results. During the twelve months, underlying earnings came in at the top end of guidance, on the back of new store openings and what management said was volume-led growth.

B&M European Value Retail SA (LSE:BME), the discount retailer, saw its profits hit the top end of guidance for the year as it expanded its store footprint and demand spiked. Full-year underlying earnings reached £629 million, compared to guidance of between £620 million and £630 million, marking a 9.7% jump year-on-year.

Closed-end funds tend to cut their payouts over time due to negative consequences of leverage during market crashes, leading to potential permanent capital destruction. Today, we are looking to revisit the six funds that have inceptions prior to the 2008/09 Global Financial Crisis that have still never cut their regular distributions. A long history of no-cuts can be important for income-focused investors, but we also examine coverage and valuations to determine whether they are worth exploring further.