Toll-road operator (TCL) has enjoyed solid support through 2022 as “risk off” names have flourished during the recent uncertain times and at this stage we see no reason to believe the outperformance will change with $15 looking likely before Christmas. The stock is currently forecast to yield more than 3% over the next 12 months which should add support to any dips below $14 but as has been the theme over the last year we will become cautious if / when the stock does pop to fresh post-COVID highs.
The stock has traded ex-dividend this week paying a 26c part franked dividend hence from an entry and risk/reward perspective we wouldn’t be chasing at current levels.
NB MM holds TCL in our Active Income Portfolio
MM is mildly bullish TCL initially looking for a test of $15
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