Why Telstra Corporation Ltd is a good stock for future growth

Telstra Corporation Ltd (ASX:TLS) makes yet another acquisition of an e-health company to expand its Telstra Health business.

| 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

Telecom giant Telstra Corporation Ltd (ASX: TLS) took one more step in establishing itself as a leading e-health service provider by announcing the acquisition of Everywhere Healthcare. The network of 1,600 general practitioners is part of Medibank Private Ltd (ASX: MPL) and provides access to specialist care via video consultations through regular GPs.

For patients who have difficulty travelling or don't have immediate access to necessary healthcare, the consultations can save much time, effort and money.

Telstra's group executive retail Gordon Ballantyne told Fairfax media that video consultation with specialist healthcare professionals is a huge growth area.

Within the past two years, Telstra has made quite a number of acquisitions of companies that use high-speed telecommunications to bring healthcare to more people and improve the service given.

It was only last week Telstra made another acquisition of UK-based data analytics company Dr Foster. This company makes software for medical professionals to improve work performance of medical staff and is the leader in health informatics in the UK.

Telstra's e-health business division was renamed to Telstra Health and now is made up of more than 10 businesses covering different aspects of e-health service provision, data management and software systems. The demand for healthcare is always growing, so Telstra can put its vast telecommunications expertise and ample development funds to good use in this field.

Previously, Mr. Ballantyne projected Telstra Health will make up a substantial part of Telstra's total business within five years and potentially catch up with Telstra's other major grow area- network application services. NAS provides cloud computing applications and business enterprise services in a rapidly expanding industry.

Telstra is reshaping its business into these two high-demand areas to maintain growth over the long term. The stock pays a 4.7% yield fully franked and the company has a long record of stable dividend payment. As such, Telstra can be a solid part of a long-term investment portfolio.

Motley Fool contributor Darryl Daté-Shappard does not own shares in any company 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 policyThis article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

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 »