STK: Tech Decline Presents Attractive Opportunity For Entry

Summary

• STK offers diverse tech exposure with a 6.7% dividend yield, utilizing a dynamic covered call option strategy to generate income despite tech sector volatility.
• Despite a 12% price decline in 2025, STK's total return is positive at 2.8%, presenting a buying opportunity for income-focused investors.
• STK's reliance on net realized gains for NAV growth makes it vulnerable during tech industry declines, but it has maintained consistent distributions over the past decade.
• While STK provides AI market exposure, its option strategy caps upside potential, making traditional ETFs like QQQ more suitable for maximizing total returns.

Hiroshi Watanabe

Overview

With the recent market selloffs fueled by uncertainty around President Trump's tariff proposals, plenty of technology companies have come down from their inflated valuations. Columbia Seligman Premium Technology Growth Fund (NYSE:STK) is a unique closed-end

Analyst’s Disclosure:I/we have a beneficial long position in the shares of STK 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.