MENU

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.

NEW! Get our Top Dividend Stock for 2016

Our resident dividend expert names his Top Dividend Share for 2016. Not only are the shares dirt cheap, the company is trading on a juicy, fully franked dividend yield. Simply click here to gain access to this comprehensive FREE investment report, including the name of this fast growing ASX dividend share. No credit card required!

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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.