Is Telstra Corporation Ltd (ASX: TLS) a safe haven blue chip during the coronavirusv share market selloff?
Don't get me wrong. No business is immune from share price falls if some shareholders want to sell in a widespread falling market.
The Telstra share price is down 17% since 21 February 2020. It hasn't dropped as heavily as the S&P/ASX 200 Index (ASX: XJO), but it's still down.
Some businesses are talking about giving their customers payment holidays. Telstra itself has given users more data. But home internet and phone internet is going to be very important for a lot of Aussies not to feel too couped up. Netflix, Disney+ and so on will be in high demand during this.
What is Telstra doing to combat this?
Telstra recently announced a number of initiatives to support its own business and the wider economy.
The giant telco said that it was putting on hold any further job reductions. It will continue to focus on its productivity program, but won't announce any job cuts over the next six months.
It's also going to recruit an extra 1,000 contractors to help management call centre volumes.
Telstra will bring forward $500 million of capital expenditure from the second half of FY21 into 2020, including accelerating its 5G rollout.
The telco will support businesses by suspending late payment fees and disconnections until at least the end of April.
It will also extend its sponsorships expiring this year for another 12 months to provide certainty for partners and various causes.
Foolish takeaway
Telstra has now said its FY20 result will now be at the bottom end of the range this year. Compared to the banks I think Telstra will do quite well throug this, but I think there are some shares that are trading at better value yet are still quite defensive for the long-term. Telstra still has the NBN and competition problems.
