The Medibank Private Ltd (ASX: MPL) share price continues to enjoy the glow of the Coalition's shock federal election victory with it up 15% over just the last month and up 33% over the past year. That's some good growth for a company that has the amount it can put private healthcare premiums up by every year regulated by the federal government.
One reasons investors are probably bidding Medibank and NIB Holdings Ltd (ASX: NHF) shares higher is the belief that the Coalition government will encourage more people to take up private health insurance policies via increases to the Medicare levy or less generous spending on Medicare and its rebate system.
NIB shares are up around 15% since the election result and close to a 52-week high of $6.88.
Medibank offers investors some defensive revenues and dividends thanks to its reliable premiums paid by its huge amount of members.
At $3.33 the stock offers a trailing yield of 3.9% plus full franking credits based on 12.9 cents per share in dividends handed out over the past 12 months. On the same basis NIB's trailing yield is 3.1% fully franked.
