Shares of Sydney Airports (SYD) are still well bid over $7.00 after the company announced 1H17 results, which included EBITDA of $577 million , cash flow of $383 million and an upgraded dividend guidance from 33.5 cents to 34.5 cents for calendar year 2017.
This strength in cash flow and increased dividend puts SYD on a dividend yield of 4.9%.
You're not a member! Trial today
We expect strong price resistance in the $7.30 area and consider the stock expensive in the $7.30/50 area.
Considering the extended market conditions, in general, we prefer a at-the-money buy/write strategy for SYD to enhance portfolio returns on a stock with modest upside potential.
Sydney Airports
