My #1 Income Strategy For 2025 (Safety, 14% Dividends On The Table)
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
Investment Strategy: Investing in closed-end funds (CEFs) can provide higher income streams and diversification opportunities compared to traditional index funds, especially by reallocating profits into underperforming sectors like healthcare.
Fund Comparison: While the abrdn Healthcare Investors Fund (HQH) offers high dividends, the BlackRock Health Sciences Trust (BME) may be a better long-term investment due to its stronger management and discount-management program, despite its lower yield.
Analyst Views on BME
About BME
BlackRock Health Sciences Trust (the Trust) is a closed-end management investment company. The Trust investment objective is to provide total return through a combination of current income and long-term capital appreciation. The Trust seeks to achieve its investment objective by investing, approximately 80% of its total assets in equity securities of companies engaged in the health sciences and related industries and equity derivatives with exposure to the health sciences industry. The Trust is focused on achieving its goal primarily by investing in a portfolio of equity securities and also by employing a strategy of writing (selling) call and put options. The Trust invests in a portfolio of sectors, which include biotechnology, health care equipment and supplies, life sciences tools and services, and pharmaceuticals. BlackRock Advisors, LLC acts as the manager of the Trust.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
