How does the Telstra (ASX:TLS) share price usually perform leading up to Christmas?

The Telstra share price doesn’t usually perform well in December…

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a woman holds an old fashioned telephone ear piece to her ear while looking unhappy sitting at a desk with her glasses crooked on her nose and a deflated expression on her face.

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The Telstra Corporation Ltd (ASX: TLS) share price has been a surprise ASX 200 blue chip performer in recent times. Telstra shares have delivered a very pleasing year to date performance in 2021 so far, as well as a pleasing 12 month performance. This telco’s share price is up 33.4% and 30.8% over those periods respectively, despite today’s nasty share price slump. So far this Monday, Telstra is down 0.86% at $4.02 a share.

It was only last Tuesday that Telstra was hitting a new 52-week high of $4.09 a share though, its highest level since late 2017. So where to from here? Well, since we are approaching the end of the year, it might be a good time to ask how Telstra shares typically perform in the lead up to Christmas. Is there a pattern to watch out for here?

Well, let’s dig in.

Will the Telstra share price be naughty or nice?

So let’s first look at last year. Telstra began December 2020 at a share price of $3.07 (those were the days). By Christmas Eve, this ASX 200 telco had closed at $3.01 a share. That’s a Scrooge-like slide of 1.95%.

Before you execute a pre-December sell out of your Telstra position, let’s see if this pattern holds true for other years as well.

2019 had Telstra start the twelfth month at $3.86 a share, only to end up at $3.65 by Christmas Eve – a slide of 5.44%. Ok, not a great start. Let’s go back to 2018.

Telstra began December 2018 at a share price of $2.93. By 24 December, it had fallen to $2.78. The pattern continues.


Telstra kicked off December 2017 asking $3.39 a share. By Christmas Eve that year, it was up at $3.66 a share, a rise of almost 8%.

So what does this tell us? Not much in all likelihood. Yes, Telstra has had 3 bad runups to Christmas in a row. But sometimes if you flip a coin 3 times, it comes up with 3 heads in a row. No one knows how this Christmas period will go for the Telstra share price. But it’s probably not a good idea to try and make an investment decision on something so arbitrary anyway.

At the current Telstra share price, this ASX 200 telco has a market capitalisation of $47.75 billion, with a dividend yield of 3.98%.

Should you invest $1,000 in Telstra right now?

Before you consider Telstra, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Telstra wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor Sebastian Bowen owns shares of Telstra Corporation Limited. 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.

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