5% Yield On Tech, 4% Discount, 2 Monthly Dividend Hikes

Looking for an attractive dividend yield in the tech sector? Looking for a bargain, a discount? How about both? Income investors often utilize closed-end funds for the highest yields in tech. This stock yields 4.94% and pays monthly. Management raised the monthly dividend twice in the past 12 months. Both selling at discounts to NAV. We compare the two funds holdings, dividends, performance, and other attributes.

As it happens, two popular sister tech funds, BlackRock Science And Technology Trust (BST), and its younger sibling, BlackRock Science and Technology Trust II (BSTZ), which IPO'd in 2019, are both selling at discounts to NAV. One strategy which can be useful when investing in CEFs is to buy them at discounts to NAV which are deeper than their historical discounts. In the case of BST, its current -3.46% discount is cheaper than its one-year 2.62% average premium, its three-year 2.66% average premium, and five-year .16% average premium.

Source: Seeking Alpha

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