BlackRock Health Sciences Trust has seen a 5% price decline over the past year, with a total return of 1.5% including distributions. BME's high 7.8% dividend yield is attractive but potentially unsustainable due to reliance on net realized gains and weak net investment income. The fund's option writing strategy caps price upside, contributing to underperformance compared to peer healthcare funds and traditional ETFs like XLV.
The remnants of bank and broker reaction to B&M European Value Retail SA's (LSE:BME) profit warning earlier this week continue to trickle out. On Thursday it was the turn of JP Morgan, which cut its price target to 299p from 320p.
B&M European Value Retail SA (LSE:BME) festive trading update was much weaker than expected, Deutsche Bank said, but the past quarter could represent the "trough" before a potential rebound. Group sales growth of 2.6% for the third quarter was around a 4% miss versus the consensus forecast, the bank noted.
B&M European Value Retail SA (LSE:BME) has announced a special dividend worth £151 million as it reported good sales of seasonal products over Christmas. The value chain said like-for-like sales in its UK arm dropped by 2.8% in the 13 weeks to 28 December 2024 but had been positive in the last few weeks, a trend that has continued into this year.
Closed-end funds have seen significant discount narrowing in 2024 across the board, as discounts have been cut in more than half on average. Despite record highs being hit regularly this year in the S&P 500, NASDAQ 100, and DJIA, opportunities still exist as not everything has been participating on the upside equally. Investors could consider funds like the BME and FLC, which may still offer attractive entry points despite the overall discount narrowing in the CEF space and elevated broader equity markets.
Not many people know this, but if you really want to diversify—deftly balancing and rebalancing to maximize (and protect) your gains, you need to invest in closed-end funds (CEFs).
Last time around, we had rated BlackRock Health Sciences Trust as a hold. The fund has not delivered much since then, but the sector has gotten really oversold. We go over the thesis for this one today and tell you why we think its is a Buy.
B&M European Value Retail SA (LSE:BME) shares gained ground on Thursday after the discounter posted improved first-half figures as cost pressures continued to drive demand. Group sales climbed by 3.7% to £2.64 billion over the six months to September, aided by a 6.0% uptick across the UK in the second quarter, B&M reported on Thursday.
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.