ASX telco Telstra Group Ltd (ASX: TLS) was one of the earliest shares to get out of the gate with its latest numbers this earnings season. Unfortunately, the market wasn’t kind to the telco when those earnings were made public on 13 August.

As we covered at the time, Telstra’s share price dropped a hefty 3.2% on earnings day, and, at $4.70 a share at the time of writing, is now down almost 6% from where it was at market close on 12 August.

Perhaps investors were expecting better than the 0.8% drop in revenues that Telstra revealed, or the 4.9% bump in underlying net profit after tax (NPAT) of $2.5 billion.

But most investors who own Telstra shares do so not for this telco’s growth potential, but for its dividend income firepower.

For its entire history as a public company, Telstra has been renowned for its fat, and usually fully franked dividends. It is considered one of the ASX’s most reliable income payers, and usually offers a yield at the top end of what most ASX blue chips can offer.

So today, let’s discuss what kind of yield one can expect from buying Telstra shares today.

Telstra shares: What kind of dividend yield is on the table?

So, over the past 12 months, Telstra has forked out two dividend payments. The first was last September’s final dividend worth 9.5 cents per share. That one came with full franking credits attached. The second was March’s interim dividend, worth 10.5 cents per share. For the first time in a long time (perhaps ever), that dividend only came partially franked at 90.48%.

This annual total of 20 cents per share in dividends gives Telstra the 4.26% yield we see the telco trading at today.

However, now that we know what Telstra’s final dividend for 2026 looks like, we can update that figure. Last week, Telstra announced that its next dividend would be worth 10.5 cents per share. That’s a coincidental 10.5% hike over 2025’s final dividend, bringing it in line with March’s interim dividend. Like the payout, though, this one will also come partially franked at 90.48%.

This new annual total of 21 cents per share in dividends means we can assign Telstra a forward dividend yield of 4.46%. However, that will only hold if Telstra’s next interim dividend at least matches the one we saw back in March. Given this company’s track record, that seems very possible. But nothing is ever certain on the ASX. Let’s see what happens next year.

The post Buying Telstra shares? Here’s the yield you’ll get today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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.

It’s been an encouraging start to this Thursday’s trading for the S&P/ASX 200 Index (ASX: XJO). At the time of writing, the ASX 200 has advanced a confident 0.26% and is back over 9,070 points. Things aren’t so rosy for Fortescue Ltd (ASX: FMG) shares, though.

Fortescue is having a day to forget. At the time of writing, the big mining stock has retreated by 0.47% to $17.98 a share. That’s after closing at $18.06 yesterday.

It seems investors were not impressed by the miner’s latest earnings, which became public this morning before market open.

As we covered earlier today, there were still a few decent numbers in that report. For the 12 months to 30 June 202, Fortescue reported revenue growth of 9% to US$17 billion. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose 9% to US$8.6 billion, while underlying net profits after tax (NPAT) were up 3% to US$3.5 billion.

But let’s talk about the latest Fortescue dividend. After all, many ASX investors own this miner purely for its dividend prowess, which has been formidable in the past.

What does the new Fortescue dividend look like?

So, this morning, Fortescue announced that its final dividend for 2026 would come in at 46 cents per share. As is almost always the case with this miner’s payouts, this payment will come with full franking credits attached. This latest final dividend represents a significant reduction (23.3% to be precise) from the 60 cents per share final dividend that investors enjoyed last year.

It means Fortescue will dole out a total of $1.02 per share in fully franked dividends in 2026, a 2-cent drop over the $1.04 that shareholders bagged over 2025. That was assisted mightily by the fact that the company’s interim dividend from March (worth 62 cents per share) was a hefty hike over 2025’s interim payout of 50 cents.

Fortescue has nominated 1 September as this latest payout’s ex-dividend date. So investors have until the close of trading on 31 August to secure Fortescue shares if they wish to receive this payout.

Payday will then roll around on 29 September next month. Fortescue is running its dividend reinvestment plan (DRP) too. So if eligible shareholders wish to receive additional Fortescue shares in lieu of the traditional cash payment, they have until 3 September to opt in to the DRP.

Right now, Fortescue shares are trading on a trailing dividend yield of 6.79%. However, now that we know what Fortescue’s next payout will look like, we can assign a lower forward yield of 5.67% to its shares.

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

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Motley Fool contributor Sebastian Bowen 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Coles Group Ltd (ASX: COL) is one of those ASX shares that can be easy to overlook because the underlying business is so familiar.

Australians keep turning up for groceries each week, while Coles has spent years investing in how those groceries are moved, picked, and delivered.

With the shares trading around $23.17 on Thursday, does the current price still offer good value?

The shares carry a premium

According to CommSec, consensus earnings per share estimates stand at 90 cents in FY26, 96.6 cents in FY27, and $1.12 in FY28.

At the current share price, that puts Coles on a PE ratio of roughly 26 times forecast FY26 earnings.

I would certainly describe that as a premium valuation for a supermarket operator.

But I think looking only at the FY26 multiple misses an important part of the story.

Analysts are expecting earnings per share to increase by around 7% in FY27 before accelerating further in FY28. By then, forecast earnings would be almost 25% higher than in FY26.

If Coles delivers that growth, today’s valuation begins to look considerably more reasonable.

Using consensus estimates, its PE ratio would fall to 24 times in FY27 and around 21 times in FY28.

Where could that growth come from?

One reason I am comfortable with the forecasts is that Coles has already spent heavily on improving its operations.

Its automated distribution centres are designed to make replenishing stores more efficient, while its automated customer fulfilment centres are helping the company handle online grocery orders at greater scale.

These investments are now moving beyond the expensive implementation stage. Coles said at its half-year result that supermarket earnings benefited from the annualised contribution from its automated distribution centre program as well as the absence of major implementation and transition costs.

I think Coles is now in a better position to reap the benefits of that spending.

Coles does not need dramatic growth in grocery demand to increase earnings. Making an enormous existing business more efficient can have a meaningful impact when those improvements are spread across its store and supply chain network.

Online shopping provides another avenue. The investments Coles has made in fulfilment should allow it to serve more customers in the way they want to shop while improving the economics of that channel over time.

Dividends could grow as well

The consensus dividend forecasts are also moving in the right direction.

The market expects dividends per share of 75.5 cents in FY26, 82 cents in FY27, and 95.3 cents in FY28.

At the current price, these payouts represent dividend yields of 3.2%, 3.5%, and 4.1%.

I like that progression because it gives shareholders another way to benefit if the expected earnings growth comes through.

One thing to keep in mind

Investors will not have to wait long for an important update.

Coles is scheduled to release its FY26 results on 25 August.

That result could change analyst forecasts and therefore the valuation calculations above. I would pay particular attention to what management says about the benefits from automation, costs, consumer behaviour, and the outlook for the year ahead.

Foolish takeaway

I think the Coles share price offers reasonable value at around $23.17.

The shares are clearly priced at a premium, but I believe the expected earnings growth helps justify it. If earnings per share reach around $1.12 in FY28, the multiple investors are paying today comes down significantly without requiring the share price to do anything.

With a major result only days away, there could be some short-term movement ahead. But for investors looking several years into the future, I think Coles remains a share worth buying.

The post Is the Coles share price good value? appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Grace Alvino 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.