Title: Swerving Away from Index Funds: Exploring 8%+ Tech Dividends and Upside

Absolutely, let's dive into the world of tech stocks! While there's always a possibility of a pullback, there's a clever strategy to lessen that risk and even score dividends exceeding 8%.

, and Administrator

2025 January 24 . 8:42 AM

2 min read

Investing wisely requires a diverse approach, my friend. This strategy, often called diversified... — Investing wisely requires a diverse approach, my friend. This strategy, often called diversified investment, is all about spreadin' your eggs in multiple baskets. It's a simple principle that can yield some pretty solid results.

Title: Swerving Away from Index Funds: Exploring 8%+ Tech Dividends and Upside

Let's discuss tech stocks, with a focus on the NASDAQ 100. While there's a potential risk of a pullback, we can minimize this by grabbing dividends and price upside. The NASDAQ, with about 60% tech exposure, has historically outperformed the S&P 500. However, its current P/E ratio of 37.2 is at its highest since the dot-com bubble, mainly driven by AI advancements.

AI is a game-changer, driving efficiencies in various sectors. Open-source models and intense competition between tech giants like Google, Meta, Microsoft, and others, will keep lowering AI costs. This could slow the rise of large-cap AI stocks, although it offers opportunities in other sectors as well.

Title: Maximizing Investment Returns with BST Strategies

To seize these opportunities, we recommend a 2025 AI-investing strategy focused on high-yielding CEFs. Our favorite, the Adams Diversified Equity Fund (ADX), yields close to 9%, investing in tech giants like Microsoft, Google, and NVIDIA, while also holding non-tech firms like JPMorgan Chase and Visa, which will benefit from AI.

Title: Understanding NAV-Total Returns: A Comprehensive Guide

Despite potential risks from crypto influence, CEFs are advantageous in this scenario. For instance, the NASDAQ's higher exposure to Bitcoin-related stocks like MicroStrategy can pose risks to index funds. However, CEFs can avoid these risks by focusing on stable, well-managed funds with lower crypto exposure.

By investing in tech-focused CEFs with high dividend yields, you not only minimize risk but also benefit from cash payouts and AI-driven growth opportunities. This strategy is a well-balanced and managed approach to tech investments, providing investors with a diversified portfolio and potentially higher returns.

In this context, investors might consider investing in 'discount to nav funds', such as closed-end funds, to potentially acquire tech stocks at a cheaper price. 'High yield funds' like the Adams Diversified Equity Fund (ADX) could be a good choice, offering yields as high as 9%. This fund, which invests in tech giants like Microsoft and Google, as well as non-tech firms benefiting from AI, can provide 'retirement income' with its dividend payments.