Telstra just hit a 10-year high. Has this ASX income giant still got more to give?

Telstra Group Ltd (ASX: TLS) shares pushed to another multi-year high on Tuesday, with investors continuing to back one of the ASX’s most dependable blue-chip income names.

In afternoon trade, the Telstra share price was up 0.28% to $5.355, after climbing as high as $5.37 earlier in the session.

That marks its highest level since August 2016, putting the stock back near levels not seen in almost a decade.

The move also extends Telstra’s 12-month gain to almost 30%, which is a strong return for a telecommunications stock that is usually known more for reliable dividends than big share price gains.

That performance is well ahead of the broader market. By comparison, the S&P/ASX 200 Index (ASX: XJO) has risen about 8% over the same period.

Why the Telstra share price keeps moving higher

The main reason behind Telstra’s strength is the market’s growing confidence in the company’s ability to keep lifting earnings.

Its recently announced mobile plan price increases, which begin in May, are expected to lift the average amount it earns from each customer. Brokers have previously noted that this should help make up for slower subscriber growth.

That ability to raise prices highlights the strength of Telstra’s network and brand. It also shows the company can protect profit margins even while consumers remain more careful with spending.

Investors are also still responding positively to February’s half-year result, which included another increase in its fully franked interim dividend to 10 cents per share, as well as ongoing progress with its buybackprogram.

This combination of dividend growth, capital returns, and consistent earnings continues to support demand for the stock.

What the chart is showing now

From a technical view, the move above the previous $5.25 to $5.30 resistance area looks important.

That level had capped the share price several times through March, so today’s move to $5.37 suggests buyers are still willing to keep pushing it higher.

The chart also shows the 14-day relative strength index (RSI) at around 69, which puts the stock close to overbought territory.

That points to strong momentum still being in place, especially with the share price continuing to track along the upper Bollinger band.

The next visible support area sits around $5.20 to $5.25. Below that, the old breakout zone near $5 could become a stronger floor over the medium term.

Foolish takeaway

Telstra’s climb to its highest level since 2016 reflects more than just defensive buying.

Investors are rewarding the company’s stronger pricing discipline, reliable dividend growth, and the consistency of its earnings base.

The stock’s momentum also remains firm, with the chart suggesting investors are still comfortable paying up for quality and yield.

The post Telstra just hit a 10-year high. Has this ASX income giant still got more to give? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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.