Shares in Telstra Corporation Ltd (ASX: TLS) have roared higher since the company reported its full-year results and final dividend on 11 August.
After delivering a robust financial scorecard, the Telstra share price jumped to an eight-month high as of yesterday's market close.
On Monday, the telco provider's shares finished at $4.15 apiece, up 0.73%.
Below, we take a look at the company's latest dividend announced to the market.
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Telstra shares near ex-dividend date
There could be a short-term boost for the Telstra share price today as investors look to secure the final dividend.
The ex-dividend day falls on Wednesday.
This means if you buy the telco's shares today and hold them until tomorrow, you'll be eligible for the dividend.
It is worth noting that when a company reaches its ex-dividend day, historically its shares tend to fall in proportion to the dividend paid out. This is because some shareholders who have locked in the dividend will then sell to gain a quick profit and move on to the next investment.
When is pay day for Telstra shareholders?
If you manage to secure the Telstra dividend, you'll receive a payment of 8.5 cents per share on 22 September.
The latest dividend represents a lift of 6.25% on the prior corresponding period, and is the first increase since 2015.
The dividend is also fully franked.
Management said the improved dividend was a result of the company's successful T22 strategy and the strength of its balance sheet.
Furthermore, it noted its confidence in the T25 strategy reaching high-teens earnings per share (EPS) growth from FY21 to FY25.
The total dividend for the year comes to 16.5 cents per share.
This includes an increase in the ordinary dividend from 10 to 13.5 cents per share, and will see around $1.9 billion returned to shareholders.
It also marks the end of the nbn-related one-off special dividend given the nbn rollout is complete.
Telstra share price snapshot
Despite climbing of late, the Telstra share price has remained flat following extreme volatility on the ASX in 2022.
In contrast, the S&P/ASX 200 Communication Services Index (ASX: XTJ) has fallen 8.6% over the same period.
Telstra commands a market capitalisation of roughly $47.6 billion and has a dividend yield of 2.67%.
