Telstra (ASX:TLS) full year dividend for 2021 expected to be 16 cents per share, fully franked

The Telstra Corporation Ltd (ASX:TLS) share price may have fallen around 11% in the past 12 months, but with the leading telecommunications company recently saying it’s “building momentum,” better days could be ahead for Telstra shareholders.

One thing weighing on the Telstra share price over the last 12 months has been concerns that it may cut its dividend.

These fears were allayed after Telstra declared a fully franked 8 cents per share interim dividend for the first half of 2021, flat on the same period last year.

Telstra also confirmed it expects to pay a fully franked final dividend of 8 cents per share, bringing its total dividend for FY 2021 to 16 cents per share.

With the Telstra share price trading at around $3.30, the telco’s shares are trading on a fully franked dividend yield of 4.8%, or 6.9% when grossed up for franking credits.

Although Telstra continues to face economic and competitive headwinds, the company did say it has ambitions for mid-to-high single-digit percentage profit growth in FY 2022.

With the Reserve Bank of Australia likely to keep interest rates at close to zero for the next three years, by comparison to term deposits, the Telstra dividend yield looks very attractive.

Analysts at Goldman Sachs recently retained their buy rating and lifted the Telstra share price target to $4.00,

Elsewhere, UBS recently retained its buy rating and $3.70 share price target and Credit Suisse held firm with its outperform rating and $3.85 Telstra share price target.