Medibank remains in our ASX50 model portfolio from lower levels and we continue to view the stock as a worthwhile buy-write strategy at the current “higher low” price formation.
MPL pays $0.053 dividend on the the 7th of March and when complimented with a $3.30 June call option, (credit $0.11), the strategy delivers 10%+ in annualised cash flow.
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MPL reports 1H18 earnings on the 16th of February and the market is looking for 3 – 5% EPS growth and NPAT of $230 million.
