I'm planning on using TLS as a variation on a term deposit.
With the dividend guarenteed for the next 12 (to 24?) months, the fully franked return is at 14%. Obviously a lot higher than the going rates for term deposits, such as 6.41% through UBank.
Doing some calculations, the price would have to have dropped by 8.5% at my 38.5% tax bracket for me to 'break-even' on this play. My rough valuations for TLS have it at almost $3 though, so I think the downside risk is small.
What are peoples thoughts on this stock specific strategy?