BlackRock Floating Rate Income Trust remains a sell due to NAV erosion and unsustainable dividends.

The BlackRock Floating Rate Income Trust (BGT) continues to be rated a sell because its net asset value (NAV) is steadily declining and its dividend payouts are not supported by earnings. The fund's current yield of 13.1% exceeds its net investment income by nearly double for 2025, indicating unsustainable distributions. High exposure to below-investment-grade debt and dependence on favorable interest rates increase the risk of defaults and further earnings pressure. Despite a wider discount to NAV, the potential for further NAV decline and dividend cuts outweighs the attractiveness of its high yield.