What is the current dividend yield on Telstra shares?

Here's the income an investor can expect from their Telstra shares.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Telstra Corporation Ltd (ASX: TLS) shares have had an interesting month. The company has just completed a major corporate restructuring which saw Telstra shares briefly change their ticker code from TLS to TLSDA. Thankfully for traditionalists, all is right with the world again now Telstra is back to the good old TLS.

But investors have historically bought Telstra shares with the expectation of consistent and high dividend income. The company has even increased its annual dividend payments this year, the first time investors have seen a shareholder pay rise in six years.

So with all of this in mind, what kind of dividend income can an investor expect today from the Telstra share price?

Young woman thinking with laptop open.

Image source: Getty Images

What is the current yield on Telstra shares?

Well, Telstra's last two dividend payments were the April interim dividend worth 8 cents per share, and the final dividend worth 8.5 cents per share that was paid out in September.

That last dividend contained the pay rise that investors craved for so long. As is typical with Telstra, both dividends came with full franking credits.

So given the Telstra share price has closed at $3.90 on Friday (down 1.02%), these two dividends give the telco a trailing dividend yield of 4.23%. That grosses up to an even more impressive 6.04% if we include the value of those full franking credits.

That means that if an investor bought $100,000 worth of Telstra today, they could expect an annual income of $4,230, plus franking, from their new shares.

As we discussed earlier this week, that dividend yield is not the highest Telstra shares have ever traded at. At one point in this telco's history, its trailing dividend yield reached as high as 10%. But it is still a pretty good return on one's capital today by ASX standards.

Motley Fool contributor Sebastian Bowen has positions in 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 has positions in 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 Scott Phillips.

More on Dividend Investing

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

Why Rio Tinto shares flew back onto my passive income radar this week

Following this week's big dividend boost, Rio Tinto’s passive income appeal came roaring back.

Read more »

Person handing out $100 notes, symbolising ex-dividend date.
Dividend Investing

$1,000 buys 311 shares in an incredibly reliable ASX dividend stock

This business has a great track record of dividend growth.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

I'd generate $1000 in monthly passive income using these three high-yield stocks

These stocks combine good yields with solid underlying businesses.

Read more »

Happy young woman saving money in a piggy bank.
Dividend Investing

How much passive income would $100,000 of BHP shares make?

Here is what current forecasts suggest an investment in the mining giant could produce.

Read more »

A werewolf monster holds its big dividend of cash in its paws.
Resources Shares

Monster dividend: Are Rio Tinto shares a buy for income today?

This latest dividend is a doozy.

Read more »

A boy stands in front of two similar but slightly different doors, scratching his head as to which one to choose.
Growth Shares

Looking for both growth and income? This ASX share is the perfect choice

You don't always have to choose between growth and income.

Read more »

A businessman in a suit adds a coin to a pink piggy bank sitting on his desk next to a pile of coins and a clock, indicating the power of compound interest over time.
Dividend Investing

3 ASX dividend shares raising dividends like clockwork

Payouts from these stocks are regularly going up.

Read more »

Woman smiling with her hands behind her back on her couch, symbolising passive income.
Dividend Investing

I'd buy 11,295 shares of this ASX stock to aim for $400 a month of passive income

This business could be one of the most underrated options for dividends.

Read more »