One of the biggest disappointments on the share market last year was the performance of the Telstra Corporation Ltd (ASX: TLS) share price.
The telco giant finished the year with a share price decline of over 27% largely on the back of it decision to slash its dividend in FY 2018.
Should you buy Telstra shares?
I think that Telstra is well worth considering as an investment option today, especially in this low interest rate environment.
Due to its share price decline, Telstra's proposed dividend of 22 cents per share works out to be a fully franked 6% yield.
This is not only far better than anything on offer from savings accounts and term deposits, but is also well ahead of the market-average.
Furthermore, I am optimistic that the company will be able to maintain this payout for at least the next two to three years. After which a lot will depend on how successful Telstra is at filling the gap in its earnings caused by the completion of the NBN rollout.
In light of this, I would pick Telstra ahead of rivals TPG Telecom Ltd (ASX: TPM) and Vocus Group Ltd (ASX: VOC) at this point.
Overall, Telstra may have had a nightmare 2017, but I expect 2018 to be a much more positive experience for its shareholders.
