Everything you need to know about the boosted Telstra dividend

a man looks down at his phone with a look of happy surprise on his face as though he is thrilled with good news.a man looks down at his phone with a look of happy surprise on his face as though he is thrilled with good news.

One of the ASX 200 shares reporting its earnings today was blue chip Telstra Group Ltd (ASX: TLS). Telstra shares have reacted positively to the company’s latest earnings, with the Telstra share price presently up a healthy 1.81% to $4.215 a share.

As we went through this morning, the telco reported green numbers across the board. Over the six months to 31 December 2022, Telstra’s total income rose 6.4% to $11.6 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) rang in $3.9 billion, an 11.4% lift, while net profit after tax (NPAT) was up 25.7% to $0.9 billion.

Tesltra’s earnings per share (EPS) increased by 27.1% to 7.5 cents per share.

And this enabled the centrepiece of Telstra’s results: a 6.3% increase to Telstra’s cherished interim dividend to a fully franked 8.5 cents per share.

Telstra shares rise as divided hiked

During Telstra’s full-year results for FY2022 from last year, investors were immensely excited when the telco raised its final dividend to 8.5 cents per share, the first time in seven years Telstra had given investors a pay rise. So what is now a back-to-back dividend hike is certainly welcome news.

This latest interim dividend will take Telstra’s annual payout to a fully franked 17 cents per share.

On the current Telstra share price, this gives the telco a forward dividend yield of 4.03%.

Here’s what Telstra’s management said about the dividend hike this morning:

On the back of our continued growth, the Board resolved to pay a fully franked interim dividend of 8.5 cents per share representing a 6.3 percent increase on the prior corresponding period, and in line with the second half of last financial year.

The interim dividend is consistent with our policy to maximise the fully franked dividend and seek to grow it over time.

So when can investors look forward to getting the cash in their hands?

Well, this new interim dividend is scheduled to be doled out on 31 March. But if any new investors wish to receive it, they will have to own Telstra shares on or before the ex-dividend date of 1 March, with the record date set for the following day.

Investors then have until 3 March to opt for the optional dividend reinvestment plan (DRP) if they wish to receive additional Telstra shares instead of a cash payment.

The Telstra share price is now up a healthy 6.46% in 2023 to date, but only up 3.3% over the past 12 months:

The post Everything you need to know about the boosted Telstra dividend appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Telstra Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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