ECAT: 20%+ Yield, Shareholder Vote In Spotlight

Summary

  • BlackRock ESG Capital Allocation Term Trust offers ESG-focused exposure with a diversified portfolio, high yield, and a 12-year term.
  • The fund's variable monthly distribution surged to a forward yield above 20% after a management battle, with most of the payout being return of capital.
  • Performance has been mixed: Strong 2023/2024 returns after a tough 2022, but high ROC distributions may erode NAV and future returns.
  • Currently trading at a 5.7% discount to NAV, ECAT is attractive for yield. But investors should wait until the shareholder vote on Saba proposals are announced.
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Green globe on the moss in the green forest Environmental concept, ecology and sustainable environment of the world. Icons scattered around green globe

Sakorn Sukkasemsakorn

Have you looked into ESG high-yield investing? Environmental, Social, and Governance issues have made some inroads in the market over the past few years. You're likely to see an ESG section in companies' financial reports that lays out their records on these

This article was written by

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Robert Hauver, MBA, aka “Double Dividend Stocks” was VP of Finance for an industry-leading corporation for 18 years and has been investing for more than 30 years. He focuses on undercovered and undervalued income vehicles and he leads the investing group Hidden Dividend Stocks Plus.

With Hidden Dividend Stocks Plus he scours the world's markets to find solid income opportunities with dividend yields ranging from 5% to 10% or more, backed by strong earnings. Features include: a portfolio with up to 40 holdings at a time including links to associated articles, a dividend calendar, weekly research articles, exclusive ideas, and trade alerts. Learn More.

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

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