ASX dividend yield: Telstra Corporation Ltd shares V. Woolworths Limited shares

At the current Telstra Corporation Ltd (ASX:TLS) share price and Woolworths Limited (ASX:WOW) share price, both blue chip companies pay meaty fully franked dividend yields.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

At the current Telstra Corporation Ltd (ASX: TLS) share price and Woolworths Limited (ASX: WOW) share price, both blue chip companies pay meaty fully franked dividend yields.

Woolworths V. Telstra Dividends

WOW dividend, TLS dividend
Data source: Morningstar

Woolies

Woolworths shares have come back from the brink when investors were growing nervous about the ongoing losses from its Masters Home Improvement business and the growth of rivals Coles and Aldi.

However, with the divestment of its Home Improvement business and a revamped management team and board, the supermarket powerhouse is attempting to reinvigorate its brand and price point. The company recently cut its dividend but is expected to yield 3% fully franked.

Telstra

Telstra shares have been sold down as investors grew nervous over a 'black hole' in its future profits, competition from the likes of TPG Telecom Ltd (ASX: TPM) and perhaps a stretched valuation.

While Telstra retains its leadership position in a number of communications markets, the company is often perceived to be a slow or no-growth business. Indeed, the company has failed to grow its profits per share materially in recent years.

Nonetheless, Telstra pays an impressive dividend to shareholders — currently forecast by analysts at 7% fully franked.

Which is better?

Both companies face headwinds and have some risks. However, if I were looking for a dividend share to buy today, I would pick Telstra before Woolies. Not only does it yield a massive dividend but it is a leader in its market.

Having said that, there are over 2,000 shares in Australia and more than 10,000 worldwide, so I'm not in any rush to buy Telstra shares. I think there are better places to invest money right now.

Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any company mentioned. Owen welcomes and encourages your feedback. You can follow him on Twitter @OwenRask. The Motley Fool Australia owns shares of Telstra Limited and TPG Telecom Limited. 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.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »