The Telstra Corporation Ltd (ASX: TLS) share price is heading south during the early afternoon on Wednesday.
At the time of writing, the telco provider's shares are down 2.06% to $4.05.
Why are Telstra shares slipping on Wednesday?
Following the release of the company's full-year results, investors are eyeing Telstra shares as they go ex-dividend today.
The ex-dividend date is particularly important as it determines which shareholders will receive the company's latest dividend.
If you held Telstra shares at yesterday's market close, you will be eligible for the final dividend.
However, if you didn't own them and bought them today, the dividend will go to the seller.
The reason why the shares are falling today is because investors tend to secure the dividend and then sell for a quick profit. Usually, the share drops by the same amount of the dividend that is to be paid out.
What does this mean for Telstra shareholders?
For those eligible for the Telstra dividend, you'll receive a payment of 8.5 cents per share on 22 September. The dividend is fully-franked.
Notably, it's the first time the board has increased the dividend since 2015 following the success of the T22 strategy.
This brings the full-year dividend to 16.5 cents apiece, which equates to a 115% earnings payout ratio. This follows Telstra's updated capital management framework to "maximise fully franked dividend and seek to grow over time".
Are Telstra shares a buy now?
Following the company's financial scorecard, a couple of brokers weighed in on the Telstra share price.
According to ANZ Share Investing, the team at Morgans raised its price target by 0.9% to $4.60 per share. Based on today's price, this implies an upside of 13.6% for investors.
On the other hand, Macquarie analysts had a different tone, cutting its price target by 7.3% to $3.80. This implies a downside of 6.2% from where Telstra shares trade today.
Telstra share price snapshot
Looking at the past 12 months, the Telstra share price has risen by almost 3% despite difficult trading conditions.
Telstra shares reached a multi-year high of $4.31 in January and are only 6.7% from breaking that feat again.
Telstra commands a market capitalisation of roughly $46.73 billion and has a dividend yield of 2.65%.
