2024-06-17 12:07:37 ET
Summary
- Columbia Seligman Premium Technology Growth Fund outperforms S&P 500 in total return due to the high distribution and capital appreciation captured.
- STK provides a majority focus on the tech sector.
- Future interest rate cuts may serve as a catalyst for growth as this means that tech companies will have a lower cost of borrowing to fuel new innovations and growth.
- The current dividend yield is 5.5% and has the ability to create a large dividend income stream when compounded over a long period of time.
Overview
Columbia Seligman Premium Technology Growth Fund ( STK ) has slowly become my largest closed-end fund to date, and it's for a reason. I previously covered STK and discussed how its strong track record has outperformed the greater indexes such as the S&P 500 ( SPY ) and now the fund has become even more attractive. Since STK operates as a closed-end fund, the price can trade separately from the fund's actual net asset value....
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For further details see:
STK: A High Yield From Tech At A Discount