Columbia Seligman Premium Technology Growth Fund (STK) Stock

STK is a closed-end fund that primarily invests in high-growth technology stocks and utilizes call overwrite to reduce volatility and generate income. Besides high growth potential, currently, the fund yields nearly 5.5%, making it a good investment for income investors. Besides moderate income, the past growth record has been excellent. We would rate the fund as a 'hold' for existing owners and a 'buy' for new investors as a diversification in the technology space. However, the new buyers should use dollar-cost-averaging to avoid the risk of buying near the top.

BOSTON--(BUSINESS WIRE)--Today, Columbia Seligman Premium Technology Growth Fund, Inc. (NYSE: STK) (the Fund) declared a fourth-quarter distribution, pursuant to its managed distribution policy, in the amount of $0.4625 per share, which is equal to a quarterly rate of 2.3125% (9.25% annualized) of the $20.00 offering price in the Fund's initial public offering in November 2009. The fourth-quarter distribution of $0.4625 per share is equal to a quarterly rate of 1.4131% (5.65% annualized) of the.

Interest rates have fallen, benefiting leveraged closed-end funds like Columbia Seligman Premium Technology Growth Fund, which invests in tech stocks and uses an options strategy for downside protection. STK generally tracks the Nasdaq 100 ETF but has underperformed during market corrections and has higher seasonal risks. Despite a solid long-term track record and attractive valuation, STK's mixed relative performance history warrants a hold rating.

Hedge funds have a big problem: They can't beat the market anymore.

MINNEAPOLIS--(BUSINESS WIRE)--Columbia Seligman Premium Technology Growth Fund, Inc. (the “Fund”) (NYSE: STK) today held its 14th Annual Meeting of Stockholders (the “Meeting”) in Minneapolis, Minnesota. Stockholders voted in favor of the recommendations of the Fund's Board of Directors (the “Board”) on each of two proposals at the Meeting. Specifically, Stockholders re-elected Directors Kathleen Blatz, Pamela G. Carlton and George S. Batejan and elected David M. Moffett, each for a term that w.

Columbia Seligman Premium Technology Growth Fund focuses on leading tech stocks with strong returns since inception. Top holdings include Lam Research, Broadcom, and Microsoft, all potentially overbought and due for a pullback. Nvidia's massive rally could spark a tech stock selloff, making it a good time to sell and wait for a pullback.

Columbia Seligman Premium Technology Growth Fund outperforms S&P 500 in total return due to the high distribution and capital appreciation captured. STK provides a majority focus on the tech sector. Future interest rate cuts may serve as a catalyst for growth as this means that tech companies will have a lower cost of borrowing to fuel new innovations and growth.

Large-cap technology stocks are finally seeing some limits to their upside after an epic 40%-plus run to all-time highs over the last year or so. So while the Magnificent 7 aren't quite as magnificent as they used to be, in some ways that can be an advantage to funds that write options. The Columbia Seligman Premium Technology Growth Fund has historically been the premier option-write technology fund among CEFs, typically trading at a double-digit premium.

STK is appealing for investors that are seeking tech exposure combined with regular dividend flow. Stock-picking showed its risks in 2023 with the Fund being underweight in key companies which reduced share appreciation. Active management is underperforming the benchmark even when including dividends.