If you're looking for passive income from Telstra shares, here's what you need to know.
What's happening with the Telstra dividend?
This morning, Telstra reported some solid results for the financial year gone by.
Highlights included a 5.4% year on year increase in total income, which reached $23.2 billion. And net profit after tax (NPAT) increased 13.1% from FY22 to $2.1 billion.
This saw the Telstra board declare a final, fully franked dividend of 8.5 cents per share. That's equal to the final FY22 Telstra dividend. Though with a higher interim payout, the full-year dividends of 17 cents per share are up 3% from FY22.
Commenting on the final Telstra dividend, CEO Vicki Brady said:
We maintained our disciplined approach, and our financial performance enabled the Board to resolve to pay a final dividend for FY23 of 8.5 cents per share, returning $2.0 billion to shareholders over FY23 when combined with the interim dividend for FY23.
Brady said the dividend payout "reflects the principle of our capital management framework to seek to grow our fully franked dividend over time".
Looking at what passive income investors might expect in the years ahead, Brady added, "We understand the importance of consistent shareholder returns and dividends, and we seek to grow our fully franked dividend over time as part of our approach to capital management."
If you're looking to bank the final dividend from the ASX 200 telco, you'll need to own shares at market close on Tuesday, 29 August. The stock trades ex-dividend on 30 August.
Eligible investors who prefer to reinvest that payout rather than receive the cash can make use of Telstra's dividend reinvestment plan (DRP). The board determined the DRP will continue to operate for the final dividend.
If you want to participate in the DRP, you have to act by 1 September.
The final Telstra dividend will be paid to eligible shareholders on 28 September.