Here’s why the Telstra Corporation Ltd share price has fallen 4.6% today

Source: Telstra presentation

The share price of Telstra Corporation Ltd (ASX: TLS) has fallen 24 cents or 4.6% today, and is acting as a drag on the overall S&P/ASX 200 (Index: ^AXJO) (ASX: XJO).

Indeed, today’s fall can mostly be attributed to the fact that the shares are now trading without rights to their interim dividend. When the company reported its earnings results on 18 February, its directors declared a dividend of 15.5 cents per share (fully franked) with 1 March being the ex-dividend date.

The declared amount was the same as the one paid in the prior period, but a 3.3% improvement on the 15 cent per share dividend declared for the year-ago period. Investors who owned the shares leading into today are entitled to the dividend with payment (either in cash, or equity if you elected to partake in the Dividend Reinvestment Plan) to be made on 1 April, 2016.

Along with the 15.5 cent per share dividend, the telecommunications giant also reported a marginal lift in revenue to $13,681 million for the half-year, together with a 0.4% increase in profit to $2,093 million.

Telstra’s share price has fallen sharply over the last six-months or so, losing nearly a quarter of its market value since it peaked at $6.53 per share in August. Now trading on a 6.2% fully franked dividend yield, Telstra is certainly worth a second look for investors.

Investors may also want to check out shares of Vocus Communications Limited (ASX: VOC) which could also be a decent buy at their current price of $7.99.

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Motley Fool contributor Ryan Newman has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest.

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.

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