Telstra Group Ltd (ASX: TLS) increased its dividend for the first time in seven years in FY22. And now the dividend has received global recognition in the Janus Henderson Global Dividend Index report.
Telstra shares fell slightly today to close at $4 apiece. For perspective, the S&P/ASX 200 Index (ASX: XJO) rose 0.33% today.
Let's take a look at the global dividend trend report in a little more detail.
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What did the report say?
In Australia, there was an overall 13% decline in dividend payouts in the third quarter, according to the report. Global dividends increased 7% overall to $415.9 billion in the quarter.
BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), and Commonwealth Bank of Australia (ASX: CBA) made the list of the top 20 dividend payers in the world in the third quarter.
The report also highlighted Telstra and Transurban were among ASX shares to significantly lift their dividends in the third quarter of the 2022 calendar year. The report said:
Banks accounted for one quarter of the Q3 total and made the largest contribution to growth; their payouts rose 5.8% on an underlying basis.
However, the biggest percentage increases came from Telstra and Transurban, the former returning surplus capital, despite lacklustre operating performance, and the latter recovering sharply from the lifting of lockdowns.
The Australian headline total fell by a fifth reflecting lower special dividends and weakness in the Australian dollar.
Telstra paid a fully franked final ordinary dividend of 7.5 cents per share in FY22, up 50% from 5 cents per share in FY21. This was paid in September. In addition, Telstra paid out a special dividend of 1 cent per share in FY22, down from a 3-cent special cash dividend in 2021.
As highlighted in Telstra's annual results, the telco increased its dividend for the first time in seven years in FY22. This reflected the company completing its T22 strategy and "strong momentum" in the underlying business.
The company's earnings per share (EPS) soared 48.5% to 14.4 cents per share. Looking ahead, Telstra is looking to grow its fully franked dividend as part of its T25 strategy.
Telstra CEO Vicki Brady said:
With cash flow generation and opportunities ahead to monetise assets (although we have made no decisions yet in this regard), we will focus on maximising our fully-franked dividend and seeking to grow it over time.
Share price snapshot
The Telstra share price has fallen 4% in the year to date, while it has climbed 2% in the last month.
For perspective, the ASX 200 has gained 0.15% in the past year.
This ASX share has a market capitalisation of more than $46.2 billion based on the current share price.
