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You Can Buy This 11.2% Yielding, Unleveraged Equity CEF Without Paying A Premium

Published Tue, 22 Sep 2015 13:48:33 -0400 on Seeking Alpha

Let's start with a tale. There's a domestic-equity closed-end fund that is paying an 11.2% distribution from a quarterly payout that has been stable since the fund's inception over five years ago. It is one of only five unleveraged, domestic-equity CEFs that is in positive territory TTM; the other four are well-covered CEFs with lesser distribution yields. Its investing strategy is conservative, focused on covered-calls to generate income. At least here on Seeking Alpha, it stays well under the radar with essentially no attention from the site's contributors.
Impossible, you say? Well take a look at Columbia Seligman Premium Tech (NYSE: STK).
I've been writing about this fund for two years. If any other Seeking Alpha contributor has paid any attention to it, it's not obvious. Put STK in the search box and the only thing you get is a few articles by Left Banker. Readers are no more interested than Seeking Alpha's authors: those articles are solidly among my least. Despite its impressive numbers, STK remains about as unnoticed as a fund can be on this site.
STK has $254M in AUM, which places it as a mid-size equity CEF. Trading volume is modest but not so low as to present exceptional liquidity problems. The fund invests in the technology sector. Management looks for capital appreciation from the portfolio holdings, and generated income from a covered call option-writing strategy. Calls are written on the Nasdaq 100 or its ETF equivalent on a... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
H&Q HEALTHCARE INVESTORS 19.76   0.0 0.00 1.84 9.31
H&Q LIFE SCIENCES INVESTORS 16.51   0.0 0.00 0.00 9.00
BLACKROCK HEALTH SCIENCES TRUST 38.80   0.0 0.00 0.00 6.20


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