BlackRock Science And Technology Trust: Is This CEF Worth The Risk?

Summary

• BST covers most top US tech stocks, like Amazon, Alphabet, or Microsoft but uses leverage and a covered call strategy to enhance the performance.
• Unlike these stocks, BST pays you a generous dividend, making it interesting for income investors or retirees.
• Additionally, BST exposes its investors to private equity, which usually is challenging for retail investors.
• BST is riskier than a direct investment due to leverage and exposure to private equity.
• Rather than writing an extensive analysis of BST, I will briefly cover BSTs business and focus more on the risk I see currently.

Laurence Dutton

Thesis

When I first discovered the BlackRock Science and Technology Trust (NYSE:BST), I was very interested because I liked having exposure to technology stocks while receiving a generous dividend. This is possible because the BlackRock Science and

Analyst’s Disclosure:I/we have a beneficial long position in the shares of BST either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.