BST: Get Paid An 8.4% Yield For Owning Tech Stocks
Summary
- 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.
- Despite its strong performance since 2014, BST's heavy tech concentration poses risks if tech stocks under-perform.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of BST, NVDA, AVGO, META, AAPL, AMZN 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.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.