"BSTZ generates most of its cash flow from covered call premiums on its public equity holdings and from realized gains when private positions are sold. BlackRock notes in its managed distribution plan that monthly payouts may include a return of capital, meaning that part of the distribution can represent a return of principal rather than portfolio earnings."
"BSTZ's monthly distribution reached $0.22305 in March 2025 before declining to $0.1625 by November 2025, representing a reduction of about 27% from the peak. At the current rate, the annualized payout is $2.64 per share, yielding roughly 8% at a share price near $23.92."
"A special distribution of $0.517116 in December 2025 lifted the full‑year total to $2.517116, compared with $1.80701 in 2024. That special payment likely came from realized gains on private holdings rather than recurring income and should not be used to project future yield expectations."
"BSTZ holds over 30% of its portfolio in private, illiquid technology companies, with Databricks as the largest holding."
BlackRock Science and Technology Term Trust has gained 57.79% over the past year, with shares at $23.92. The fund generates cash flow primarily from covered call premiums and realized gains from private positions. Monthly payouts may include a return of capital, indicating part of the distribution may not be from earnings. The distribution history shows a significant reduction from its peak, and a special distribution in December 2025 was likely from realized gains, not recurring income. Over 30% of the portfolio is in private technology companies, impacting income generation.
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