Telstra Corporation Ltd (ASX: TLS) has already fallen 4.4% in 2016, after falling around 8% last year.

In fact, since its April 2015 high of around $6.67, Telstra has fallen around 20%. After such steep falls in this blue chip share, many investors will be questioning: “Should I buy Telstra shares?”

Dividend

Telstra’s dividend is a key reason many Australian investors choose to own its shares. The company has one of the most reliable dividends of all blue-chip shares on the ASX, and it’s also fully franked. That means, Australian investors who hold for more than 45 days may be eligible to receive a tax credit come June 30, thus boosting the effect of the dividend.

Especially in our record-low interest rate environment, Telstra’s forecast 5.8% fully franked dividend will continue to appeal to many investors.

Growth

Despite being Australia’s largest telecommunications company, Telstra also boasts modest long-term growth potential. In Asia, the $65 billion telco is widening its reach to key infrastructure markets, while also increasing its investment spend on the next generation of profitable technologies like eHealth, Machine-to-Machine communication and wireless networking in local markets.

Value

At $5.33 per share, the risk-reward trade-off has tilted more in buyers’ favour over recent months. Previously, I’ve said $5 could present a compelling entry point into the stock, and I stand by that. However, at today’s levels, Telstra is – arguably – already trading below fair value and could be worthy of closer inspection.

Foolish takeaway

A reliable blue-chip dividend share, growing modestly, yet trading below fair value presents a pretty compelling investment case for Telstra. However, it’s also important to regularly remind ourselves to exercise patience in the share market and wait for only the most compelling investments to present before committing our capital. For that reason, although I think investors could do worse than buy now, I’m waiting for a wider margin of safety on Telstra shares before hitting the buy button.

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Motley Fool writer/analyst Owen Raszkiewicz does not have a financial interest in any company mentioned. Owen welcomes your feedback on Google+, LinkedIn or you can follow him on Twitter @ASXinvest.

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.