If I'd bought $2,000 worth of Telstra shares during the Covid crash, here's what I'd have today

It took a brave investor to go bargain hunting for Telstra shares as COVID swept across the world.

| More on:
A woman standing in a blue shirt smiles as she uses her mobile phone to text message someone

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

Telstra Group Ltd (ASX: TLS) shares held up better than most S&P/ASX 200 Index (ASX: XJO) companies during the pandemic fuelled market crash in early 2020.

From 21 February through to 20 March 2020, the ASX 200 plunged 33% amid global fears surrounding the new COVID-19 virus.

During that same period shares in the ASX 200 telco 'only' fell 18%.

On 20 March of that year, the Telstra share price closed the day at $3.07.

Now it took a brave investor to go bargain hunting as one nation after another began shuttering their borders amid grim headlines of rising global fatalities from the virus.

Indeed, investors would have been better off biding their time a few more months and buying Telstra shares on 30 October 2020. That's when the stock bottomed out after reporting a steep fall in profits.

On 30 October, Telstra closed trading for $2.68 a share.

How much have Telstra shares gained since the pandemic crash?

In afternoon trade today Telstra shares are trading for $4.25 apiece, up 0.5% for the day.

That sees the ASX 200 telco up 59% since its 30 October pandemic crash lows.

If I'd been brave enough to wade in on that day, I could have bought 746 shares with my $2,000, with a bit of pocket change left over.

Today those shares would be worth $3,170.50, representing a gain of $1,170.50.

But wait! There's more.

Over that period I'd also have received a total of five, fully franked dividend payments from the company totalling 41 cents per share.

That would see me with another $305.86, bringing the gains on my $2,000 post-pandemic crash investment in Telstra shares to $1,476.36.

Motley Fool contributor Bernd Struben 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

Investor looking at smartphone and considering Evolution's share purchase plan
Communication Shares

Own Telstra shares? Here's what to watch in next week's half-year results

Here's what analysts are expecting from the telco giant during the first half.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Communication Shares

Missed out on Superloop stock? My favourite ASX telco stock to buy and hold

The ASX telco space is an exciting industry for opportunities.

Read more »

Two women happily smiling and working on their computers in an office
Dividend Investing

Which ASX 200 communications share will pay the best dividend yield in 2025?

Several communications stocks are expected to pay dividend yields above the ASX 200 Index average of 4%.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Communication Shares

Is this my chance to buy Telstra shares?

After drifting lower, I’m considering whether this stock is an opportunity.

Read more »

Man smiling at a laptop because of a rising share price.
Communication Shares

This ASX 200 stock just hit an all-time high and UBS still tips 24% upside

Fear not buying this ASX 200 communications stock despite it trading at a record high, says UBS.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Communication Shares

Are Tuas shares the next Telstra?

I think this Asian telco has an exciting future.

Read more »

Five young people celebrate outside with sparklers
Dividend Investing

1 ASX dividend stock down 47% in 12 months I'd buy right now

These stocks are a real opportunity, in my view.

Read more »

Woman and man calculating a dividend yield.
Communication Shares

3 insiders buy up shares in ASX All Ords stock following crash

Shares were bought swiftly following the crash.

Read more »