BlackRock Science and Technology Trust (BST) Stock

BST's dual mandate of growth and income via covered call writing and a managed distribution plan has led to underperformance, lagging the NASDAQ by 9% YTD. The fund's 8% "dividend yield" is misleading, as it relies on option writing and capital returns, limiting upside and hindering long-term growth. Portfolio changes show increased concentration and a significant rise in Nvidia's weight, highlighting active management's inconsistency compared to passive index trackers.

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.

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 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.

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.

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 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 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.

HUB and Blackswan Technologies Elevate Partnership to Penetrate Major Financial Institutions and Grant HUB the Option to Purchase BST. The Current Phase of the Collaboration Focuses on a Group of Banks in Western Europe, with a Deal Valued at Approximately €20 Million. HUB and Blackswan Technologies Elevate Partnership to Penetrate Major Financial Institutions and Grant HUB the Option to Purchase BST. The Current Phase of the Collaboration Focuses on a Group of Banks in Western Europe, with a Deal Valued at Approximately €20 Million.