The Motley Fool

Why the Telstra share price just hit a 52-week high to climb 38% in 2019

The Telstra Corporation Ltd (ASX: TLS) share price hit a 52-week high of $3.84 today and is now up around 38% over just 2019. It’s also up 10% over the past one-month period that included a benchmark cash rate cut from the Reserve Bank of Australia that is probably encouraging yield hunting SMSF or ‘mum and dad’ investors to buy the shares. 

The telco is also in the middle of a radical cost cutting program, which it is accelerating in a move that has recently pleased investors.

Another factor likely supporting the share price is the May 8 decision of the ACCC to block the proposed merger between two of Telstra’s main rivals in TPG Telecom Ltd (ASX: TPM) and Vodafone Australia.

Since May 8 Telstra shares have climbed 16% as the blocking of the merger means it’s certain to face less competition in the key mobile space as neither TPG or Vodafone alone have the eye-watering sums of capital required to build out 5G mobile networks. 

Based on trailing 12 month dividend payments of 19 cents per share the stock yields 4.9% at a price of $3.84, which is low on a historical basis. Today’s investors then need to be confident the telco will not have to cut its dividend again in the near future.

These ASX shares have shot up 204% and even 954%, but we think they’re just getting started

The $700 billion “war on cash” is on… and even The New York Times is calling it “a goldmine of staggering proportions”…

That’s why The Motley Fool has just released a brand-new research report: “Leave Your Wallet at Home: 2 Stocks for the Digital Payments Revolution.” Inside, you’ll find 2 expert-picked ASX shares poised to profit from this sweeping tech revolution.

Heck, stock #1 is already up 204% in just the last two years. While Stock #2 has climbed an eye-watering 954% since 2015 alone…

Yet we’re convinced the sheer biggest returns could be still ahead, with 10X or more potential profits still on the table. Simply click the link below now and we’ll show you how to snap up this timely (and potentially highly profitable) new research for FREE.

Click here to snap up your copy of “Leave Your Wallet at Home: 2 Stocks for the Digital Payments Revolution.”

Motley Fool contributor Tom Richardson owns shares of TPG Telecom Limited. 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.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.