You Ask, I Answer: Are These 8% Dividends Too Pricey?
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
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.
Analyst Views on STK
Wall Street analysts forecast STK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for STK is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
0 Buy
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0 Sell
Current: 39.380
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Current: 39.380
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About STK
Columbia Seligman Premium Technology Growth Fund, Inc. (the Fund) is a closed-end management investment company. Its investment objective is to seek growth in capital and current income. Its investment program consists primarily of investing in a portfolio of equity securities of technology and technology-related companies and writing call options on the National Association of Securities Dealers Automated Quotations (NASDAQ) 100 Index or its exchange-traded fund equivalent (the NASDAQ 100) on a month-to-month basis. The Fund may also buy or write other call and put options on securities, indices, exchange-traded funds (ETFs) and market baskets of securities. The Fund may hold foreign securities of issuers located or doing substantial business in emerging markets. It invests in various sectors, such as communication services, health care, biotechnology, industrials, and information technology. Columbia Management Investment Advisers, LLC is the investment manager of the Fund.
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.
