You Ask, I Answer: Are These 8% Dividends Too Pricey?
Misconceptions about Closed-End Funds (CEFs): Many investors misunderstand the fees associated with CEFs, believing they reduce dividends; however, fees are deducted from the fund's portfolio before dividends are distributed, meaning yields reported are net of fees.
Performance Comparison: CEFs like AIO and STK have outperformed the S&P 500 despite their higher fees, and investors can benefit from purchasing discounted CEFs for potentially higher returns compared to traditional ETFs.
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- Quarterly Distribution Announcement: Columbia Seligman Premium Technology Growth Fund has declared a first-quarter distribution of $0.4625 per share, representing a quarterly yield of 2.3125% and an annualized yield of 9.25% based on the $20 IPO price, indicating the fund's ongoing ability to provide stable returns.
- Market Price Comparison: As of January 31, 2026, the fund's market price was $39.95 per share, with the first-quarter distribution accounting for 1.1577% of the market price (annualized 4.63%), reflecting the fund's relative stability and attractiveness in the current market environment.
- Distribution Payment Schedule: The distribution will be paid on February 24, 2026, with a record date of February 17, 2026, and an ex-dividend date also set for February 17, ensuring shareholders receive timely returns and bolstering investor confidence.
- Change in Distribution Policy: The fund received exemptive relief from the SEC in 2010, allowing it to distribute long-term capital gains more than once in a taxable year, demonstrating the management's commitment to a flexible distribution strategy to adapt to market changes and investor needs.

- Executive Transition: Statkraft CFO Anna Nord Bjercke has announced her resignation, with Tone Aastveit Skuterud set to take over as acting CFO on January 1, 2026, which may impact the continuity of strategic execution given Skuterud's extensive management experience both within and outside the company.
- Strategic Shift: During Bjercke's tenure, she successfully optimized the business strategy and reduced costs, and while her departure may have a short-term impact on the company's competitiveness in an uncertain energy market, it also presents an opportunity for the new CFO to reassess strategic directions.
- Leadership Experience: Skuterud, who has been EVP since April 2025, brings a wealth of management experience from both Statkraft and Telenor, and is expected to leverage her financial and strategic management expertise to drive the company's future growth.
- New CFO Recruitment: Statkraft will initiate a recruitment process for a new CFO, and the efficiency and outcome of this process will directly affect the company's financial stability and future investment decisions.
Misconceptions about CEFs: Many investors misunderstand closed-end funds (CEFs), particularly regarding their fees and yields, which can lead them to miss out on significant dividends compared to ETFs like the SPDR S&P 500 ETF Trust (SPY).
CEF Fees Explained: While CEFs have higher average management fees (around 2.9%), these fees are taken from the fund's portfolio before dividends are distributed, meaning investors receive the full yield reported, which can be substantially higher than that of index funds.
Performance Comparison: CEFs like the BlackRock Science and Technology Trust (BST) and Columbia Seligman Premium Technology Growth Fund (STK) have outperformed the S&P 500 index, even after accounting for their fees, highlighting their potential for higher returns.
Investment Strategy: Investors can benefit from a "CEF rotation" strategy, buying CEFs when they are undervalued and selling when they are overvalued, while also enjoying high yields and diversification across various asset classes.
Popularity of BDCs: Business development companies (BDCs) are gaining attention for their high dividends, often exceeding 12.9%, making them attractive for retirees and middle-market companies, but caution is advised due to potential risks like sector specialization and high management fees.
Risks of Specific BDCs: Examples like TriplePoint Venture Growth BDC Corp. and Goldman Sachs BDC illustrate the pitfalls of BDCs, including poor total returns and unsustainable dividends due to high management fees and losses in their portfolios.
Comparison with CEFs: The Columbia Seligman Premium Technology Growth Fund (STK) is highlighted as a safer investment alternative to BDCs, offering a stable 5% dividend, consistent performance against major indices, and a current discount to net asset value.
Opportunities in CEFs: There are several closed-end funds (CEFs) available that yield an average of 9.5%, presenting a compelling investment opportunity with potential for significant price appreciation, while maintaining lower risk compared to BDCs.
Nasdaq Rally and AI Impact: The Nasdaq has been on a continuous rise since April, driven by companies increasingly adopting AI and robotics, leading to layoffs in the tech sector but benefiting stock owners like Amazon and Microsoft.
Dividend Investment Opportunities: Three dividend-paying funds are highlighted as attractive investments amid this trend: Global X Nasdaq 100 Covered Call ETF (QYLD) with an 11.2% yield, JPMorgan Nasdaq Equity Premium Income (JEPQ) at 10.8%, and Columbia Seligman Premium Technology Growth Fund (STK) with a 6.0% distribution rate, each employing covered call strategies for income generation.
AI's Impact on Employment and Dividends: AI is already replacing human workers, leading to increased corporate profits while creating opportunities for investors seeking dividends through funds that capitalize on the "growth-without-hiring" trend.
Investment Opportunities in AI-Driven Funds: Three closed-end funds are highlighted as potential investments offering significant dividends, including the Columbia Seligman Premium Technology Growth Fund, Nuveen NASDAQ 100 Dynamic Overwrite Fund, and Gabelli Dividend & Income Trust, each benefiting from AI integration across various sectors.









