This 14.3% Dividend Could Double In Trump 2.0

Core Viewpoint - Intuitive Surgical (ISRG) is positioned as a strong investment opportunity due to its innovative surgical robotics, particularly the da Vinci system, which is expected to see significant demand growth regardless of political changes in 2025 [2][6]. Company Overview - Intuitive Surgical specializes in advanced surgical devices, with the da Vinci system being the most widely used surgical robot globally [2]. - The company anticipates a year-over-year demand growth of 12% to 16% for the da Vinci system, attributed to its less invasive and more precise technology, leading to faster patient recovery times [2]. Investment Performance - During the previous Trump administration, ISRG shareholders experienced a stock return of 179%, raising expectations for similar performance in the future [3]. - The stock does not pay dividends, which may deter some investors, but alternative strategies such as selling covered calls are suggested to generate income [3][4]. Fund Investment Strategy - A proposed investment strategy involves purchasing the BlackRock Health Sciences Trust (BMEZ), which has ISRG as its top holding at 4.6% of the portfolio, providing a way to gain exposure to ISRG while receiving a monthly dividend yield of 14.3% [5][9]. - BMEZ is currently trading at a 9% discount to its asset value, presenting a buying opportunity for investors [6]. Market Context - The healthcare sector has seen a selloff following political developments, particularly with the nomination of Robert F. Kennedy Jr. to the Department of Health and Human Services, which has negatively impacted healthcare stocks despite Intuitive's strong fundamentals [6][7]. - The broader healthcare sector is considered undervalued, with BMEZ being highlighted as a particularly attractive investment at just 91 cents on the dollar [9]. Historical Performance - BMEZ's top holdings have historically performed well under the previous Trump administration, with returns ranging from 126% to over 1,000% [8]. - The fund employs a strategy of selling covered calls on its holdings to generate additional income, which supports its high dividend payout [8].