Here's my take on the DeepSeek selloff we saw last week: It's a buying opportunity, especially for income investors.
BSTZ, a BlackRock-managed closed-end fund, focuses on science and technology investments, including publicly traded companies, covered call options, and private investments. The fund has outperformed the S&P 500, returning 19% since September, driven by its diversified tech portfolio and strategic private investments. BSTZ's private equity holdings, comprising over 28% of the portfolio, offer significant upside potential, especially if interest in private markets revives.
BlackRock Science and Technology Term Trust, a tech-focused closed-end fund, offers attractive monthly distributions, with a current yield of 12.07%, despite recent dividend cuts and a history of volatility. BSTZ's portfolio includes high-growth tech stocks like Nvidia, with a significant increase in large-cap exposure and a focus on covered call strategies. The fund's NAV has outperformed since inception, and it currently trades at a 9.34% discount.
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.
24/7 Wall Street Insights Dividend stocks offer some of the most flexible options to suit investors of all types who seek passive income.
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.
Today, we revisit dividend investing, discussing compounding returns and the dividend snowball. A common dilemma for investors is the decision between income and income growth. We explore the 1% Rule in depth, explaining why earning 1% per month could be a minimum threshold for an income-focused fund.
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.