Is the Telstra (ASX:TLS) share price a good option for income investors?

Good this telco giant be worth considering?

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If you're an income investor searching for dividend options, then you might want to take a look at Telstra Corporation Ltd (ASX: TLS).

Why Telstra?

This telco giant has been a bit of a nightmare for income investors over the last few years but things are changing rapidly.

This is thanks to the easing NBN headwind and the progress it is making with its T22 strategy. Telstra's T22 strategy is creating a much leaner business and one which is expected to return to growth in the near future.

In fact, the company's CEO, Andy Penn, is targeting mid to high single digit operating earnings growth in FY 2022.

Back in February, Mr Penn explained: "I am confident the many initiatives we have taken under our T22 program, particularly in simplifying the business and the digitisation program, will further improve customer experience. To get the real benefits from all the effort we've already made, Telstra needs to be bold. I've set an aspiration for mid to high single-digit growth in underlying EBITDA in FY22 and $7.5 to $8.5 billion of underlying EBITDA in FY23. I am confident we can deliver this if we remain focused."

In addition to this, the company is aiming to unlock value by monetising assets and splitting into three separate entities.

Is the Telstra share price good value?

Goldman Sachs is a fan of the company and sees value in the Telstra share price.

The broker currently has a buy rating and $4.00 price target on the company's shares.

Goldman also continues to forecast the company paying a 16 cents per share fully franked dividend for the foreseeable future.

Based on the current Telstra share price of $3.48, this will mean a very attractive 4.6% dividend yield for investors over the coming years.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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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