Investors in Telstra Corporation Ltd (ASX: TLS) failed to get any relief from the group’s investor day today despite it revealing radical plans to split itself into two and look to save an additional $1 billion in costs. Part of the cost savings will come about as the chief executive vowed to sack some 8,000 staff as the group looks to become more efficient.
Still the share price dropped 5% today to $2.77 and is now down 36% over the past year, with the blue-chip stock losing nearly 60% of its value over the past three years. Telstra shareholders might want to look away now.
Chart: Telstra share price over the past 5 years
Telstra’s diabolical five-year performance goes to show that investors who focus on dividends before other investment qualities in shares can end up with poor returns.
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Motley Fool contributor Tom Richardson has no interest in any company mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. 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 Scott Phillips.