Should you buy Telstra Corporation Ltd today?

Telstra Corporation Ltd (ASX:TLS) shares are firing on all cylinders, but is it too late to buy?

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Despite the recent volatility experienced on the Australian stock market, Telstra Corporation Ltd (ASX: TLS) shareholders have watched their stock climb to heights not seen since mid-2001.

While the stock rose 1.1% today to a high of $6.26, it has risen a remarkable 20% over the last 12 months or 25.8% when dividends are included. That compares to the measly 1.9% return recorded by the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) over the same time period.

Indeed, with interest rates tipped to fall as low as 2 per cent this year, Telstra shares could have even further to rally. In fact, Charlie Aitken from Bell Potter Securities has given them a $7 price target. As reported by Fairfax media, he expects dividends to rise over the course of the year which would complement the business’ earnings growth potential and regulatory certainty.

Although it seems likely that most of the telecommunications giant’s gains have already been realised, Telstra could still be a decent long-term bet for investors wanting stability and income growth.

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Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned. You can follow Ryan on Twitter @ASXvalueinvest.

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