When it comes to dividends, the Telstra Corporation Ltd (ASX: TLS) dividend is among the most popular on the Australian share market.
Or at least it has been historically. Over the last decade, a series of cuts has led to some income investors falling out of love with Telstra.
But the tide is now turning following the telco giant’s first half results and analysts are becoming increasingly positive on the outlook of the Telstra dividend.
The Telstra dividend
When Telstra released its half year results last week, the company’s board elected to declare an 8 cents per share fully franked dividend. This was in line with last year’s interim dividend and puts it on course to pay a 16 cents per share dividend again for the full year.
Incidentally, if you want to receive the latest Telstra dividend, you’ll have to be a shareholder before its shares go ex-dividend on 2 March. After which, you can look forward to being paid at the very start of the following month on 1 April.
What about the future?
According to a note out of Goldman Sachs, its analysts don’t believe it will be too long until the Telstra dividend starts to increase at long last.
Its analysts are forecasting fully franked dividends per share of 16 cents in FY 2022 and FY 2023, then 18 cents in FY 2024, and then 19 cents in FY 2025.
Based on the current Telstra share price of $3.90, this will mean yields of 4.1%, 4.6%, and then 4.9%.
Goldman currently has a neutral rating on the company’s shares. Though, with a price target of $4.30, it sees potential upside of 10% for investors, which isn’t bad considering its strong gains over the last 12 months.
The post What’s the outlook for the Telstra (ASX:TLS) dividend? appeared first on The Motley Fool Australia.
Should you invest $1,000 in Telstra right now?
Before you consider Telstra, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Telstra wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
More reading
- Telstra (ASX:TLS) share price rises on surprise TPG deal
- Telstra, Wesfarmers, oil and unemployment: Scott Phillips on Nine’s Late News
- Why ‘dependable and reliable dividend payers’ could be the antidote to current volatility: expert
- Brokers name 3 ASX shares to buy today
- Are TPG Telecom (ASX:TPG) shares gearing up for a demerger?
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/k5MVKoI
Leave a Reply