Review Highlights BlackRock Sustainable American Income Trust's Unique Position

On 9 May 2024, Edison Investment Research issued a review of BlackRock Sustainable American Income Trust (BRSA), describing it as a singular investment that combines value orientation with sustainability. Managed by Tony DeSpirito, David Zhao, and Lisa Yang, BRSA is poised to generate attractive income and long-term capital growth through investments in high-quality, dividend-paying companies with strong ESG credentials.

The review attributes BRSA's potential to the current broad valuation gap in value stocks compared to the overall US market, an advantage anticipated to support the trust's performance, especially post-peak interest rate periods. Historically, quality stocks have seen superior performance one to three years after peaks in the interest rate cycle.

BRSA also boasts significant distributable reserves, enabling it to maintain an annual dividend of 8.0c, translating to a 3.9% yield which is attractive relative to the market. Presently trading at an 8.8% discount, the trust's valuation could see improvement with a stabilized economic outlook or enhanced relative performance.