As we’ve often noted in our recent articles, high or even moderate dividend yields are hard to come by in the tech sector. Indeed, the top three performing sectors so far in 2020, tech, consumer discretionary, and communications services, have low dividend yields of .97%, .64%, and 1.09%, respectively.
Income investors are often faced with the challenge of whether to try and trade in and out of stocks in order to reap capital gains vs. holding higher yielding stocks for income. Of course, in a topsy turvy year like 2020, that conundrum is even more challenging.
Some income investors use ETFs, mutual funds or closed-end funds to get a piece of the tech action.
BlackRock Science and Technology Trust (BST) is a CEF which offers you a way to solve the income problem, and still benefit from tech.
It currently yields 4.61%, pays monthly, and uses a covered call strategy