The ASX telco share likes to regularly reward investors with a dividend payment as a way to share Telstra's profit with shareholders.
This latest payment is the Telstra FY23 final dividend.
The Telstra board decided with the FY23 result to pay a final dividend of 8.5 cents per share. This was the same payment as last year.
However, it brought the full-year dividend to 17 cents per share for FY23, which was 3% higher than the FY22 payout.
The business is sending 8.5 cents per share to investors – if someone had 1,000 Telstra shares then they'd receive a fully franked dividend of $85.
At the current Telstra share price, today's dividend represents a fully franked dividend yield of 2.2% or 3.15% grossed-up.
Investors also had the opportunity to take part in the dividend re-investment plan (DRP) where shareholders would receive new shares rather than a cash dividend. Telstra said that the DRP price for new Telstra shares is $3.98, which had a DRP discount rate of 0%.
Will future payments be bigger?
Telstra is working hard to grow its profit, with price increases for subscribers, it's investing heavily in its 5G network, and it's trying to keep a lid on costs.
On Commsec, the current projection suggests that the Telstra annual dividend could increase by another 5.9% to 18 cents per share in FY24. That would translate into a fully franked dividend yield of 4.7% and a grossed-up dividend yield of 6.7%.
In FY23 it generated underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $8 billion. In FY24, it's expecting underlying EBITDA to rise to between $8.2 billion to $8.4 billion, suggesting growth of between 2.5% to 5%.
Telstra share price snapshot
Over the last six months, the Telstra share price has fallen 8%, while the S&P/ASX 200 Index (ASX: XJO) has only declined by 8%.