Telstra Group Ltd (ASX: TLS) shares are 0.1% higher in early morning trade on Thursday. At the time of writing, the shares are changing hands at a 10-year high of $5.28 a piece.
The telco’s stock has leapt higher since it posted its impressive half-year FY26 results last month. Telstra shares are now 8% higher for the year-to-date and an impressive 28% higher than this time last year.
For context, the S&P/ASX 200 Index (ASX: XJO) has climbed just over 8% over the same 12 month period.
The past month has been a great success story for Telstra, and I still think the telco is a buy.
Here are three reasons why to add Telstra shares to your portfolio today.
1. Telstra is a textbook defensive stock
Internet access and mobile phone connectivity are necessary for everyday life. This means the company is likely to perform steadily, regardless of what stage of the economic cycle we’re in.
Telstra confirmed this recently when it posted a strong half-year FY26 result last month. The company’s profit and earnings increased, and there were gains seen across every financial metric and division.
The results show that the company has a predictable cash flow and reliable earnings, which is classic for a strong defensive stock.
And this is great news for investors who want to hedge against potential volatility elsewhere in the index.
2. Telstra offers great passive income
It’s this defensive nature which means Telstra can offer its investors a reliable passive income with a good dividend yield.
In fact, one of the best things about Telstra is that its dividend payout ratio is close to 100% of its earnings. That unlocks a good dividend yield.
Telstra pays investors two dividends every year, in March and September. Investors are due to receive an interim 10.5 cent dividend, 90.48% franked, next week.
In FY25 the company paid investors an annual dividend of 19 cents per share, which translates to a 3.9% dividend yield at the time of writing. The telco is expected to pay an even larger 20-cent final dividend for FY26, which represents a 5.25% increase year-on-year. For FY27 the dividend payout is expected to increase again to 21 cents per share.
3. Analysts are still tipping an upside
Even after the latest price rally, some analysts are still tipping more upside ahead for Telstra shares.
TradingView data shows that five out of 15 analysts have a buy or strong buy rating on Telstra shares. The other 10 have a hold rating.
The maximum target price is $5.60, which implies a potential 6% upside at the time of writing.
The post 3 reasons to buy Telstra shares today appeared first on The Motley Fool Australia.
Should you invest $1,000 in Telstra Corporation Limited right now?
Before you buy Telstra Corporation Limited shares, consider 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 Corporation Limited 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 may be better buys…
* Returns as of 20 Feb 2026
.custom-cta-button p {
margin-bottom: 0 !important;
}
More reading
- Charter Hall Long WALE REIT declares March 2026 distribution and DRP update
- How to invest when the ASX refuses to calm down
- 5 things to watch on the ASX 200 on Thursday
- Why these ASX shares could be buys in today’s volatile market
- Here are the top 10 ASX 200 shares today
Motley Fool contributor Samantha Menzies 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 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.