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Blackrock Florida Municipal 2020 Term Trust
BlackRock Florida Municipal 2020 Term Trust (BFO)
The BlackRock Florida Municipal 2020 Term Trust, also known as BFO, is a closed-end management investment company that was formed on June 29, 2012. Its investment objective is to provide current income exempt from regular federal income tax from Florida state personal income tax and to preserve capital.
It is traded on the New York Stock Exchange (NYSE) with a ticker symbol (BFO).
Some information on Closed-End Fund Debt:
1. Publicly traded closed-end funds, like the BlackRock Florida Municipal 2020 Term Trust, raise capital through an IPO and trade on the stock market like other public companies. This means that investors can purchase and sell shares throughout the day. Unlike mutual funds, CEFs do not redeem their shares at the end of the trading day. As a result, CEFs do not have to worry about investors redeeming shares at net asset value (NAV), allowing them greater flexibility.
2. The BFO invests at least 80% of its assets in Florida municipal bonds. The fund invests in municipal bonds, including hospital revenue bonds, utility revenue bonds, and Florida state sales tax bonds. The fund may invest in private activity bonds such as industrial development bonds, exempt facility bonds, and 501(c)(3) bonds.
3. Since closed-end funds trade on an exchange, their market price may be more or less than their net asset value. Blockchain owns 85.49% of the BlackRock Florida Municipal 2020 Term Trust's float, which consists of 2,326,900 shares.
4. Investors can enhance their income by investing in CEFs like BlackRock Florida Municipal 2020 Term Trust with higher distributions or yields.
5. The BlackRock Florida Municipal 2020 Term Trust has a net asset value per share of USD 22.93 as of September 2022, up 3.06% from USD 24.00 a year ago. The fund pays dividends monthly and has a current dividend per share of USD 0.1244. It has a current dividend yield of 5.34% as of September 23, 2022. The dividend payout ratio is 84.15%, indicating that the fund's dividend is being funded from sources other than net income.
6. The closing price of BlackRock Florida Municipal 2020 Term Trust was USD 23.59 on September 23, 2022, up USD (0.46) or 1.93% from its previous closing price of USD 23.14. The BFO was USD -0.17 above its 52-week low of USD 22.93 and USD 6.79 below its 52-week high of USD 30.36. It has a P/E ratio of 6.91.
In conclusion, the BlackRock Florida Municipal 2020 Term Trust (BFO) is a closed-end management investment company traded on the New York Stock Exchange (NYSE) with the ticker symbol (BFO). It is a reliable source of retirement income as it focuses on providing current income. Its debt to equity ratio is 92.33, lower than the sector (industry) average of 124.63. It has a high payout ratio and a history of positive total returns.