That's because the telco giant has a dividend policy in place that means that a good portion of its profits end up in the pockets of its shareholders.
And while Telstra dividend's growth has been challenging over the last decade, this isn't the case any more thanks to the success of its T22 strategy and the current T25 strategy.
But what sort of passive income is on offer with the telco giant's shares? Let's find out what a $10,000 investment could generate.
Passive income from Telstra shares
With the Telstra share price currently fetching $3.79, if you were to invest $10,000 you would end up owning approximately 2,639 units.
According to a note out of Goldman Sachs, its analysts expect Telstra to be in a position to increase its fully franked dividend by 5.9% to 18 cents per share in FY 2024.
This represents a yield of approximately 4.75% based on where its shares currently trade. It also means that your 2,639 units would receive $475.02 in passive income.
The good news is that the dividend increases won't stop there. If you're willing to hold on then Goldman believes you will receive fully franked dividends of 19 cents per share in FY 2025 and 20 cents per share in FY 2026.
This will lead to passive income of $501.41 and $527.80, respectively, for those years.
But as well as passive income, Goldman Sachs sees plenty of room for Telstra's shares to rise from current levels.
The note reveals that the broker has a buy rating and a $4.70 price target on them. If its shares were to rise to this level, it would mean your 2,639 units have a market value of $12,403.30.
So, including FY 2024's dividends, a $10,000 investment could turn into 12,878.32 in 12 months if Goldman is on the money with its recommendation.