A Simple Way to Earn Big Dividends From Tech

Private‑credit funds have been under pressure because many tech companies now rely on non‑bank lenders, and the market has shifted from about $500 billion a decade ago to roughly $3 trillion. These funds promise low volatility, yet they struggle when investors ask for more cash than the “semi‑liquid” limits allow. The hidden problem becomes obvious when redemption requests exceed what the funds can comfortably handle. Because of this uncertainty, many investors turn to closed‑end funds (CEFs). CEFs trade on public exchanges, so they must follow the same rules as stocks. They also offer higher, often monthly, dividends—around 9 % on average—and provide a diversified mix of stocks, bonds, and even private equity. This structure lets investors keep their money liquid while still sharing in the growth of promising firms.

BlackRock’s Science and Technology Term Trust (NYSE: BSTZ) is a good example. It delivers an 8. 8 % yield and trades at about a 9 % discount to its net asset value (NAV). The fund holds well‑known tech stocks such as NVIDIA and Tower Semiconductor, plus growth private companies like ByteDance (TikTok’s parent) and Anthropic. Because the fund invests in equity rather than loans, investors benefit directly from the companies’ upside—something private‑credit funds cannot do. Over the past decade, BSTZ’s dividend has risen nearly 63 % as the tech sector expanded. The fund also offers special payouts that spike from time to time. Its market price has outperformed its NAV by roughly 2 %, giving it the current discount. While most CEFs trade near a 7 % discount, BSTZ’s 9 % gap is attractive for those willing to wait out market volatility. Investing in a CEF like BSTZ offers exposure to both public and private tech growth, liquidity, and a steady dividend stream—an appealing alternative when private‑credit funds face challenges.

Actions