The Telstra Group Ltd (ASX: TLS) dividend is one of the most popular options on the Australian share market for income investors.
It isn't hard to see why this is the case. Over the last couple of decades, the telco giant has returned billions of dollars of its earnings to shareholders.
And while the NBN rollout hit its dividend payments hard, this headwind is now over and growth is back on the agenda.
In fact, Telstra surprised everyone in FY 2022 by increasing its dividend for the first time in years to a fully franked 16.5 cents per share.
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Where next for the Telstra dividend?
The good news is that analysts appear to believe that it is onwards and upwards from here for the Telstra dividend.
For example, according to a note out of Goldman Sachs, its analysts are expecting Telstra to declare an interim dividend of 8.5 cents per share in February with its interim results. This is up from 8 cents per share last year and ahead of the consensus estimate of 8.2 cents per share.
Goldman then expects the same again in August, bringing its full year dividend to 17 cents per share. Based on the current Telstra share price of $4.11, this will mean a 4.1% dividend yield.
In FY 2024, the broker is expecting Telstra to increase its payout by a further 5.9% to 18 cents per share. This will mean a dividend yield of 4.4% for investors that year.
Finally, Goldman expects the Telstra dividend to increase by 11.1% in FY 2025 to a fully franked 20 cents per share. This equates to a yield of almost 4.9%.
Should you invest?
It isn't just the Telstra dividend that is expected to increase by Goldman Sachs. Its analysts see scope for the Telstra share price to rise meaningfully over the next 12 months.
According to the note, the broker has a buy rating and $4.60 price target on its shares. This implies potential upside of 12% for investors from current levels.
