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Monday February 08, 2010
BlackRock Global: A 'cash machine'
By Bryan Perry, editor The Cash Machine
This closed-end fund has all the right stuff agains The BlackRock Global Opportunities Equity Trust is a perpetual closed-end equity fund that began operations in May 2005. The primary objective of the fund is seeking current income and gains, with a secondary goal of long-term capital appreciation. 
Typically, the trust invests about 80% of its total assets in equity securities, including common stocks, convertible securities, preferred stocks, warrants, depository receipts and equity interest in REITs; options on equity securities; indices; or sectors of equity securities. BOE is able invest in companies around the world, of any market cap and even those in the process of IPOs. Currently, BOE is throwing off a highly attractive 11.44% current yield from the selling of covered calls on roughly 56% of its portfolio. This leaves plenty of room for capital appreciation from the 44% of the portfolio that is not hedged. At the same time, BOE didn't use leverage for its better than 31% return in the past year, which like many of our holdings, outperformed the S&P 500 for 2009.
With 73% of the fund in large cap ($10 billion to $20 billion) multi-national stocks, BOE is in my view, poised for another very strong year. That's because after lagging the market for the past couple of months, the financial sector is seeing strong rotation of money flow into it. Along with financials, BOE is also invested in IT, energy, healthcare and consumer discretionary, and holds big names like Roche Holding, Chevron, Novartis, eBay and GlaxoSmithKline. If you can pick it up under $20, then you are capturing an 11%+ dividend yield as the fund is experiencing a new technical breakout to the upside. Nice! Learn more about this financial newsletter at The Cash Machine. |
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