It was a reasonably disappointing month for the Telstra Corporation Ltd (ASX: TLS) share price in October.
The telco giant's shares ended the period almost 3% lower than where they started it at $3.82.
This was despite Telstra announcing an agreement to acquire Digicel Pacific together with the Australian Government.
What happened to the Telstra share price in October?
The Telstra share price appeared to run out of steam in October after some sensational gains year to date.
For example, despite its hiccup last month, the company's shares are still up approximately 30% since the start of the year. This is almost triple the return of the S&P/ASX 200 Index (ASX: XJO) over the same period.
Investors have been bidding the Telstra share price higher this year following a solid performance in FY 2021 and the unveiling of its new T25 strategy.
What is T25?
T25 is Telstra's new strategy, replacing its highly successful T22 strategy at the end of the current financial year.
Telstra's CEO, Andrew Penn, explained that T22 was based on transforming the company, whereas T25 will be about driving growth.
Management is aiming for sustained growth and value by targeting mid-single digit underlying EBITDA and high-teens underlying earnings per share (EPS) compound annual growth rates (CAGR) from FY 2021 to FY 2025.
Goldman Sachs is a fan of the new strategy and believes it will lead to a long-awaited dividend increase in the near future.
Its analysts are forecasting dividends of 16 cents per share in FY 2022 and FY 2023, before an increase to 18 cents per share in FY 2024 and then 19 cents per share dividend in FY 2025.
In light of this increasingly positive outlook, the broker has put a buy rating and $4.40 price target on its shares. Based on the current Telstra share price, this implies potential upside of almost 13% for investors.
This means November has the potential to be a much better month for the Telstra share price.
