The latest Telstra dividend is being paid today. Here's the lowdown

Today is payday for eligible shareholders of Australia's largest telco.

| More on:
Woman in celebratory fist move looking at phone

Image source: Getty Images

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

It has been a great time to own Telstra Group Ltd (ASX: TLS) shares.

Yesterday the telco giant's shares hit a multi-year high and today is payday for shareholders for its latest dividend.

The Telstra dividend

Last month, Telstra released its half-year results and delivered a solid set of numbers.

For the six months ended 31 December, the company reported a 6.4% increase in total income to $11.6 billion and an 11.4% jump in earnings before interest, tax, depreciation and amortisation (EBITDA) to $3.9 billion.

This was driven largely by momentum from its mobile business, as well as support from the recent acquisition of Digicel Pacific.

In respect to its mobile business, Telstra reported continued growth in revenue, average revenue per users (ARPU), services in operation (SIO), and earnings. Mobile services revenue was up 9.3%, postpaid handheld ARPU was up 4.5%, and SIOs were up by net 68,000 services.

In light of this strong performance, the Telstra board elected to increase its interim dividend by 6.3% to 8.5 cents per share. This is now being paid to eligible shareholders today.

What's next?

The good news for investors is that more of the same is expected in the second half.

According to a note out of Goldman Sachs, its analysts are forecasting a fully franked 8.5 cents per share final dividend. This will bring its full-year dividend to 17 cents per share, which will be up from the 16.5 cents per share dividend it paid in FY 2022.

After which, the broker is forecasting another increase to 18 cents per share in FY 2024.

Based on the current Telstra share price of $4.22, this will mean yields of 4% in FY 2023 and 4.25% in FY 2024.

Goldman also sees room for its shares to climb higher. The broker has a buy rating and $4.60 price target on them.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Communication Shares

A man sits in contemplation on his sofa looking at his phone as though he has just heard some serious or interesting news.
Communication Shares

ASX 300 stock down 24% since March now offers 'compelling value'

A fund manager has picked out this stock as a good opportunity.

Read more »

group of friends checking facebook on their smartphones
Communication Shares

How much could $5,000 invested in Telstra shares be worth next year?

Let's see what analysts think a $5,000 investment could turn into.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Communication Shares

Own Telstra shares? Here's why the ASX 200 telco just backed this AI startup

Telstra Ventures is upping its exposure to AI.

Read more »

A man looking at his laptop and thinking.
Communication Shares

Guess which ASX 200 insider just dumped $4 million in company shares

Is it a sign of rocky times ahead, or just another routine sale?

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Communication Shares

Aussie Broadband shares are falling on a big sale today

The Aussie Broadband and Superloop saga continues...

Read more »

A man in trendy clothing sits on a bench in a shopping mall looking at his phone with interest and a surprised look on his face.
Communication Shares

Should ASX investors buy the dip in Telstra stock?

The telco is widely held by retail investors but has disappointed for most of its life. Is a bull run…

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Dividend Investing

Investing for passive income? Keep any eye out for that boosted Telstra dividend today!

If you own Telstra shares, keep an eye out for that juicy dividend payout today.

Read more »

Buy, hold and sell ratings written on signs on a wooden pole.
Communication Shares

Is Telstra stock a buy, sell, or hold?

Do experts rate Telstra as a buy or a sell?

Read more »