This closed-end fund has a current annual dividend yield of 5.46%, paid quarterly.
Columbia Seligman Premium Technology Growth Fund (STK)
From Contrarian Outlook
The Columbia Seligman Premium Technology Growth Fund (STK), which, as the name suggests, holds tech stocks, including leaders like Microsoft (MSFT), Alphabet (GOOGL) and Broadcom (AVGO). Year to date, STK has posted an impressive 25% total return, beating both the S&P 500 and the tech-focused NASDAQ 100:
STK Beats the Indexes (Handily)
And, of course, STK sells call options on its portfolio to generate extra income, which it hands to us in the form of its 4.3%-yielding dividend. (That’s a bit below the yield on the average covered-call CEF, due to the fact that the fund’s price has soared.)
Despite the common “wisdom” that you can’t beat low-cost passive index funds, STK is doing exactly that—and it’s paying a dividend that nearly triples up the payout on the typical S&P 500 stock, too.
Finally, if STK sounds familiar, it’s because I’ve covered this fund a number of times in my articles on Contrarian Outlook, including in a September piece, when I named it as one of five CEFs “set to roar into 2021”. From the chart above, it seems like it is roaring indeed, and it’s definitely a fund any CEF investor should have their eye on.
Brett Owens, Contrarian Outlook, BNK Invest Inc., 500 North Broadway, Suite 265, Jericho, NY 11753 USA, 516-620-4294, April 22, 2021