BSTZ: 16% Plus Yield And 8% Discount, But Is It A Buy?

  • The BlackRock Science and Technology Term Trust primarily invests in equity and preferred securities of high-growth and technology companies around the world. It also invests up to 25% of its assets in private companies. BSTZ currently offers a highly attractive distribution yield of 16.40% and is currently trading at a reasonable discount of -8%. That said, the fund appears to be overpaying the distribution. The fund is trading at attractive levels due to the recent correction. However, there are many risks as well. It will be best to accumulate it in multiple lots rather than lump-sum.