This 13% Dividend Is Getting A Makeover. Time To Buy?

Core Viewpoint - BlackRock is implementing changes to its high-yielding funds, particularly focusing on the tech-oriented BlackRock Innovation and Growth Term Trust (BIGZ), which currently yields 13% [1][2][3] Fund Overview - BIGZ is a closed-end fund (CEF) with nearly $2 billion in assets under management, making it significant within the CEF space [2] - The fund's recent performance has lagged behind other BlackRock tech CEFs, prompting a response from BlackRock [11][12] Comparison with Other Funds - BlackRock's other tech CEFs, such as the BlackRock Science and Technology Trust (BST) and the BlackRock Science and Technology Term Trust (BSTZ), have shown strong gains and lower volatility, with BSTZ focusing on private tech firms and fast-growing public companies [4][5][6] - BST has a more diversified portfolio with major holdings in established tech firms, resulting in less volatility compared to BIGZ [6][10] Recent Developments - Activist actions have led to a shake-up in BIGZ, including a new management team and a tighter focus on tech investments [12] - A significant share buyback program is being introduced, allowing shareholders to tender shares for 99.5% of the fund's NAV, which is expected to support BIGZ's market price [12][13] Investment Opportunity - BIGZ is currently trading at a 9.1% discount to NAV, presenting an opportunity for investors to purchase shares at a lower price and potentially realize a gain when redeeming shares [13]