Here's how much Telstra's (ASX:TLS) dividend is worth right now

The Telstra Corporation Ltd (ASX: TLS) share price is nearing its 52-week high. Even so, its dividend is still looking dominant

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The Telstra Corporation Ltd (ASX: TLS) share price has been a surprisingly good performer on the S&P/ASX 200 Index (ASX: XJO) of late. As we reported last week, Telstra shares rose 11% over the month of March. That's a pretty decent move for an old ASX blue chip like Telstra.

Further, the Telstra share price is also having a top day today. At the time of writing, Telstra is up a healthy 1.77% to $3.45 a share. That's getting tantalisingly close to the company's 52-week high of $3.54 a share. Year to date, Telstra shares are now up a robust 14%.

So what's been driving investors to Telstra? A few things have gotten investors hot under the collar in that regard.

Most prominently has been the announced restructure that Telstra unveiled last month. This will result in the company being split up on paper into 4 separate divisions. These four divisions – InfraCo towers, InfraCo Fixed, ServeCo and Telstra International – will all house different aspects of Telstra's business, all while still coming under the 'Telstra Group' umbrella (so no share market spinoffs). Many investors are predicting this move will unlock significant value for the company.

But perhaps the biggest underlying factor outside this restructure is Telstra's dividend. Telstra has paid out 16 cents per share in annual dividends for a few years now. That 16 cent dividend consists of an ordinary dividend of 10 cents per share and a special dividend of 6 cents per share that is funded by nbn payments.

Despite predictions Telstra would cut this dividend last year, it has managed to hold it steady. And management committed to keeping 16 cents again this year in 2021 a few months ago.

How much is Telstra's dividend worth today?

Now as we mentioned earlier, the Telstra share price has appreciated significantly in 2021 so far. And rising share prices mean lower starting dividend yields. Even so, Telstra is still an ASX 200 leader when it comes to its yield. On the current share price, 16 cents per share annually equates to a dividend yield of 4.65%. Including Telstra's full franking credits, which grosses up to 6.64%. That's a lot better than most ASX 200 shares, including the big four banks, have on offer right now. Not to mention what's on offer from savings accounts, term deposits and other 'safer' cash-based investments.

Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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