Another big ASX 200 name reported its earnings this morning as reporting season continues to heat up on the Australian share market. Yesterday, we heard from Commonwealth Bank of Australia (ASX: CBA), and today it's Telstra Group Ltd (ASX: TLS)'s turn. So let's talk about the telco's earnings and that Telstra dividend.
As my Fool colleague covered in depth this morning, Tesltra reported some mixed numbers for its 2024 financial year.
Telstra revealed that its net income for the 12 months to 30 June 2024 rose by 1% to $23.5 billion. Underlying earnings per share (EPS) also improved by 5.7% to 18.5 cents per share. Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose by 3.6% to $8.2 billion.
That helped Telstra to book an underlying net profit after tax (NPAT) of $2.3 billion, up 7.5% over FY2023.
However, Telstra booked some significant one-off costs thanks to a business restructuring. This resulted in reported EBITDA dropping by 4.2% to $7.5 billion, and reported NPAT falling 12.8% to $1.8 billion.
But even so, these figures didn't stop Telstra from delivering a healthy dividend pay rise to its investors.
Telstra ups its dividend ante
Telstra has announced that its final dividend for FY2024 will come in at 9 cents per share. That will come with full franking credits attached, of course.
This latest Telstra payout represents a 5.88% rise over last year's final dividend worth 8.5 cents per share. It matches the interim dividend of 9 cents that investors saw paid out back in March, bringing the total FY2024 divided to an annual 18 cents per share. That's also a 5.88% increase over the annualised 17 cents per share enjoyed over FY2023.
Would-be Telstra investors have just under two weeks to secure this dividend – the telco has scheduled Wednesday, August 28, as this payment's ex-dividend date. So anyone wishing to see this payment arrive in their bank accounts will need to own shares by market close on 27 August.
Payday will then roll around on 26 September next month.
If eligible investors wish to participate in Telstra's voluntary dividend reinvestment plan (DRP), they can elect to receive additional Telstra shares in lieu of a cash payment by 30 August.
Telstra shares have reacted positively to today's earnings announcement, with the telco currently up a healthy 2.71% at $3.98 a share. At this share price, Telstra is trading on a trailing dividend yield of 4.4% but on a forward yield of 4.52% if we factor in the new dividend payout.
