This morning I added Caltex (CTX) to the private portfolio at an average cost of AUD13.49 per share (including transaction costs). Over the last few months the company has achieved some positive developments including securing a material part medium term debt funding (gearing was reasonably modest to begin with) and demonstrating that earnings are not only relatively unaffected by the recession but also some margin expansion.
Brokers have been upgrading projections and valuations. While the stock has advanced a long way from its low point last December, it is still at a very attractive 5.7% yield. The dividend is fully franked (which effectively means that it is largely tax paid for Australian tax residents and exempt from withholding tax for non-residents such as myself).