The BlackRock Enhanced Global Dividend Trust $BOE fund confirmed a downtrend channel breakout on December 1, 2022. A test of the 200 day moving average (red line on chart below) is underway.
What is particularly interesting is the 2-year weekly chart. We have a downtrend channel breakout above the downtrend channel resistance wall for the first time in 2022.
We are seeing investors increasingly move money into dividend paying ETFs and funds as they hope to cash in on dividend or fixed income while they wait the economic slowdown out. Capital gains are increasingly being viewed as harder to make through stock price appreciation, and so investors are opting in for dividends.
The primary investment goal of the BlackRock Enhanced Global Dividend Trust is to generate current income and gains, with a secondary goal of long-term capital growth. The Fund normally invests at least 40% of its assets outside of the US and at least 80% of its net assets in dividend-paying equity securities (unless the Fund management deems the market conditions unfavorable in which case the Fund would invest at least 30% of its assets outside of the US). The Fund may invest in securities of any market capitalization company, but it intends to focus on securities of large capitalization companies. Generally, the Fund intends to write covered put and call options with respect to between 30 and 45 percent of its total assets, though this percentage may occasionally change depending on the state of the market.
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