Dividends4Life: 7%-8% Yields, Deep Discounts, Monthly Payers

Do you have the stomach for contrarian investing - betting against the crowd? Sometimes that's necessary in order to find value. Why buy at a premium when you can buy at a discount? In the world of closed-end funds, buying funds at deeper than historical discounts to NAV can be a successful strategy over the long run. We've covered many CEF's in our articles, as they're useful income vehicles with attractive yields for income investors.

BlackRock Science And Technology Trust (NYSE:BST), and its younger sibling, BlackRock Science and Technology Trust II (BSTZ), which IPOd in 2019, are two popular sister tech funds which cover different aspects of the tech sector. BST focuses on large caps, while BSTZ favors small caps and more cutting-edge companies. BSTZ also has more exposure to non-US regions. BST yields 7.18% and pays monthly. Management also raised its regular monthly dividends twice in 2021. It's selling at a much deeper discount to NAV than its one-, three- and five-year averages. This article compares BST to BSTZ, which yields 8% and also pays monthly.

Source: Seeking Alpha

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