Following the Algo Engine buy signal in August, we started accumulating AZJ between $4 and $4.10. Since making a low in October at $3.90, AZJ has rallied over 10% and is now trading at $4.42.
Based on FY19 EBIT of $850mn and DPS $0.25, AZJ trades on a forward yield of 5.7%.
To enhance the return investors can now look to sell at the money call options to boost the cash flow, whilst staying exposed to the February dividend.
For more detail on how covered call options work, please call our office on 1300 614 002.