Telstra (ASX:TLS) share price lifts off after dividend announcement

With interest rates remaining at historic lows, dividend yields are in the spotlight.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Telstra Corporation Ltd (ASX: TLS) share price is moving higher this morning, up 3%.

This comes following the release of the ASX telco's full year results for the 2021 financial year (FY21).

We recap a few highlights below.

hand on touch screen lit up by a share price chart moving higher

Image source: Getty Images

What dividend payment did Telstra announce?

Telstra shares could be getting a boost today after the company reported it will pay a final dividend of 8 cents per share, fully franked.

That brings Telstra's full year dividend to 16 cents per share.

At the current price of $3.94 per share, that works out to a trailing dividend yield of 4.06%.

Bearing in mind that this comes with tax credits at the company's corporate rate, and that term deposits in Australia are paying in the range of 1% without tax credits, income investors could be helping push the Telstra share price today.

What else did the results reveal?

For the Motley Fool's detailed coverage of Telstra's FY21 results, you can follow the link up towards the top.

We'll just quickly recap 2 key takeaways here that also look to be boosting Telstra's share price in early trade.

First, while underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 9.7% to $6.7 billion, this was right within the company's guidance of $6.6–6.9 billion.

While falling earnings aren't the most welcome of news, investors tend to reward companies that achieve guidance.

Second, Telstra announced a $1.35 billion on-market share buyback. When a company repurchases its shares, existing shareholders often benefit.

Telstra share price snapshot

Over the past 12 months, Telstra is up 16%, trailing the 24% gains posted by S&P/ASX 200 Index (ASX: XJO).

Year-to-date, Telstra's share price has outperformed the benchmark, up 31% in 2021.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Technology Shares

Why two experts are urging investors to buy Pro Medicus shares

Let's see what they are saying about this beaten down market darling.

Read more »

A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.
Technology Shares

Are investors running scared of WiseTech shares?

After a major pullback, WiseTech could be entering a more interesting phase.

Read more »

Concept image of a businessman riding a bull on an upwards arrow.
Technology Shares

Why are ASX 200 tech stocks like WiseTech and Life360 going gangbusters on Wednesday?

Investors are piling back into ASX 200 tech stocks today. But why?

Read more »

A man and a woman sitting in a technology-related work environment high five each other while the man wears headphones around his neck and the woman sits in front of a laptop.
Technology Shares

Tech rebound: Bell Potter says this ASX 300 stock is a top buy

The broker thinks now could be a good time to buy this beaten down tech stock.

Read more »

A man with a beard and wearing dark sunglasses and a beanie head covering raises a fist in happy celebration as he sits at is computer in a home environment.
Technology Shares

Is this smashed ASX tech stock gearing up for a hefty comeback?

If confidence returns, the tech share could be tripling in value.

Read more »

Woman with her fingers crossed and eyes shut.
Technology Shares

Xero, WiseTech shares jump higher today: Is this the beginning of a rebound?

It's been a bloodbath for ASX tech shares so far in 2026.

Read more »

Military engineer works on drone.
Technology Shares

EOS shares rebound after a surprise twist in its South Korean laser deal

New US defence wins help EOS shares recover after early drop.

Read more »

Buy now written on a red key with a shopping trolley on an Apple keyboard.
Technology Shares

3 ASX tech stocks that belong in every long-term portfolio

Brokers remain optimistic and see up to 130% upside.

Read more »