If I invest $10,000 in Telstra shares, how much passive income will I receive in 2024?

Is Telstra a good option for income investors? Let's find out.

| More on:
Man holding a calculator with Australian dollar notes, symbolising dividends.

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 have traditionally been a popular option for passive income investors.

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.

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 positions in and has recommended Goldman Sachs Group. 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 Dividend Investing

Happy man holding Australian dollar notes, representing dividends.
Dividend Investing

3 ASX dividend shares to buy for a passive income boost

Analysts believe these shares are top buys.

Read more »

Woman with headphones on relaxing and looking at her phone happily.
Dividend Investing

How I'd invest $250 a month in ASX dividend shares to target a $24,000 annual second income

Passive income is within the reach of ordinary Aussies, just like you. Yes, I said you!

Read more »

Person handing out $100 notes, symbolising ex-dividend date.
Dividend Investing

How much will Wesfarmers shares pay you in dividends in 2024?

Will Wesfarmers continue to lift its dividends in 2024?

Read more »

Smiling woman with her head and arm on a desk holding $100 notes out, symbolising dividends.
Dividend Investing

Buy NIB and this ASX 200 dividend stock now

Analysts say these shares are buys for income investors.

Read more »

Man holding Australian dollar notes, symbolising dividends.
Dividend Investing

This ASX All Ords stock is predicted to pay a 9% dividend yield in 2025!

Huge cash flow is predicted to keep flowing from this investment.

Read more »

a young farmer stands back and admires his work in arranging bales of hay to form a house shape with two bales balancing against each other to form a roof, perched on bales tipped on their side in an abstract house shape on a freshly harvested paddock.
Dividend Investing

Buy 11,923 shares of this super ASX dividend stock for $3,100 per year in passive income

I think this stock is a strong choice for dividends.

Read more »

Smiling woman upside down on a swing with yellow glasses, symbolising passive income.
Dividend Investing

$20,000 in savings? Here's how I'd aim for $20,000 in passive income

Here’s how I’d target $20,000 in passive income every year from ASX shares by investing $20,000 today.

Read more »

Scared looking people on a rollercoaster ride representing the volatile Mineral Resources share price in 2022
Resources Shares

How is the Fortescue share price down 3% today?

Shareholders should be cheering today's Fortescue losses.

Read more »