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STK: Collect A 7% Yield From A Tech Fund That Outperforms The S&P 500

STK: Collect A 7% Yield From A Tech Fund That Outperforms The S&P 500

This tech fund pays you MONTHLY to wait while positioning for the AI boom

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TheGamingDividend
May 13, 2025
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Dividendomics
Dividendomics
STK: Collect A 7% Yield From A Tech Fund That Outperforms The S&P 500
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Most people think you have to choose between income and innovation.

That if you want to participate in the explosive upside of tech, you’ll need to forego dividends and embrace volatility. And if you want income, you’ll be stuck with slow-growth sectors like utilities or consumer staples.

But what if you could have both?

That’s the promise behind the Columbia Seligman Premium Technology Growth Fund (STK). This is a rare breed of closed-end fund that delivers regular monthly income while still giving you exposure to some of the most powerful trends in technology.

Unlike traditional tech ETFs that rely solely on price appreciation, STK amplifies investor returns with an actively managed covered call strategy, generating enhanced income from its high-quality tech holdings. And over time, that income makes a real difference, not just in yield, but in total return.

In fact, STK has outperformed the S&P 500 tracking SPY ETF over multi-year periods when distributions are included. That is a bold claim, but the numbers back it up, especially for income-focused investors who want consistent cash flow without giving up the growth potential of big-name tech companies like NVIDIA, Microsoft, and Broadcom. We can see below that STK significantly outperformed SPY!

So how does STK pull this off? And is now the time to buy?

The Market Is Hot — But Volatile

Tech is booming again. After the pullback in 2022 and early 2023, investor enthusiasm has come roaring back, driven by explosive developments in artificial intelligence, semiconductors, and cloud infrastructure. Mega-cap names like NVIDIA, Microsoft, and Broadcom are hitting fresh highs, and optimism is everywhere.

But beneath the surface, things feel less certain.

Rate cut expectations keep shifting. Inflation is sticky. The market is rewarding growth, but only selectively. And the more valuations stretch, the more fragile things start to look. A single earnings miss or soft forecast can send a stock tumbling ten percent overnight.

That’s what makes a fund like STK so timely.

Instead of trying to time the perfect entry or chase individual tech names at frothy valuations, STK offers a smoother ride. Its monthly income acts like a cushion, softening the blow when volatility spikes. And its options strategy turns market chop into opportunity, capturing premium while others panic.

In this kind of market, the smartest move might not be chasing more growth. It might be adding resilience without giving up on innovation.Want to get a well-rounded idea of where to start your investing journey? I have you covered here as well!

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So let’s dive into what makes STK an interest income play on the tech sector.

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