The Telstra Corporation Ltd (ASX: TLS) share price has recorded strong gains over the past year, up 30%. This comes as Australia's largest telco provider navigates its way around COVID-19 and the NBN headwind.
Below, we calculate how much Telstra shares would be worth if a shareholder made an investment 10 years ago.
How is the Telstra share price tracking in 2021?
Without a doubt, the Telstra share price has been on fire this year, accelerating by almost 30%.
The company's mobile division has been a standout performer as Australians continue to work from home. In addition, management's focus on cutting down costs across the business has had a positive effect on the Telstra share price.
Last month, Telstra shares reached a multi-year high of $4.03, a level not seen since August 2017.
But you may be wondering how much a long-term investor would have made. Let's take a look…
What would have happened to your Telstra investment in 10 years?
If you invested $1,000 in Telstra shares in 2011, you would have picked them up for around $3.04 each. This would have given you approximately 328 shares without reinvesting the dividends.
Looking at yesterday's closing price, Telstra shares are trading at $3.85 a pop. This means those 328 shares would now be worth around $1,262.80 (328 shares x $3.85). When considering percentage terms, this implies an increase of 26.28%, or a yearly average return of 2.36%.
In comparison, the S&P/ASX 200 Index (ASX: XJO) has given back 5.84% over the same timeframe.
However, it's worth noting this doesn't factor in the juicy dividends that Telstra pays on a bi-annual basis.
Are Telstra shares a buy?
Since the release of Telstra's FY21 full-year results, a few brokers have weighed in on the company's share price.
Australian leading investment firm Morgans raised its price target for Telstra shares by 3.6% to $4.34. Credit Suisse followed suit to also add on its rating by 2.4% to $4.25. The most recent broker note came from JPMorgan, which has initiated a bullish price of $4.40 for the telco's shares.
Based on the current price, JPMorgan's 12-month price target implies an upside of roughly 14.2%.
Telstra commands a market capitalisation of roughly $45.8 billion, making it the 11th largest company on the ASX.
