BDJ's Dividend Likely To Rise Due To Improved Option Premiums [Seeking Alpha]
Blackrock Enhanced Equity Dividend Trust (BDJ)
US:NYSE Investor Relations:
blackrock.com/investing/products/240225/blackrock-enhanced-equity-dividend-trust-usd-fund
Company Research
Source: Seeking Alpha
SummaryThe BlackRock's Enhanced Equity Dividend fund is an actively managed CEF that owns value-oriented equities with half of the fund dedicated to covered calls.BDJ has historically high dividend yields and, because it sells calls, has the potential to outperform in a bear market.BDJ has struggled in recent months as call premiums have been abnormally low due to possible over-saturation of option sellers and a lack of option buyers.Short interest is now on the rise and the VIX remains above 30, so call option premiums are likely to become very attractive.BDJ's higher weighting toward financials is a positive due to high government support of the sector.Last summer I covered BlackRock Enhanced Equity Dividend Trust (Defensive Alpha With The BlackRock Enhanced Equity Dividend FundAs I mentioned in the article, we were in a late-cycle period last year and now it seems we are at the end of the economic cycle. While I remain bullish on individual companies, I am bearish on the market as
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BDJ
Sec Filings
- 11/19/24 - Form SC
- 11/18/24 - Form SC
- 10/15/24 - Form SC
- BDJ's page on the SEC website