BlackRock Science and Technology Trust II (BSTZ) Stock

Consider investing in BlackRock Science and Technology Term Trust for high-yield income, leveraging its top holdings in NVDA and other growth tech stocks. BSTZ offers a 12.3% yield at a -9.8% discount to NAV, with a term trust liquidation event at NAV in 2031. The fund's strategy includes private investments, covered calls, and a focus on emerging technologies, with a recent increase in distribution rates to 12% of NAV.

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This year, BSTZ has outperformed BST due to valuation improvement and a brighter outlook for private investments. BSTZ's valuation gap has closed significantly, moving from a 20% discount to an 8% discount to net asset value. The private equity market's recovery and increased liquidity could continue to positively impact BSTZ, which has a larger allocation to pre-public investments.

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I've been covering CEFs for about a decade, and I've never seen them get as much attention as they are right now.

BSTZ, an equity closed-end fund focused on the technology sector, initially faced challenges with underperformance due to the technology sector slowdown. However, it has started to outperform as IPO markets and M&A activity show improvement.

5 out of 22 closed-end fund sectors positive on price and 1 out of 22 sectors positive on NAV. Saba targets BSTZ, while PDX moves to a monthly distribution. First Trust MLP CEF mergers are approved by shareholders.

BSTZ invests across tech stocks and private companies. The fund has underperformed sector benchmarks over the last several years and trades at a deep discount to NAV.

BST: 8% Tech Yield Vs. BSTZ (Rating Downgrade)