Telstra Group Ltd (ASX: TLS) shares are edging higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) telco closed yesterday trading for $4.85 apiece. During the Wednesday lunch hour, shares are swapping hands for $4.86 apiece, up 0.1%.
While that's a modest gain today, you're unlikely to hear longer-term shareholders complaining.
That's because Telstra stock is now up an impressive 37.9% since this time last year.
And that's not including the passive income the ASX 200 telco pays its stockholders.
Over the past 12 months, Telstra has paid out a total of 18.5 cents a share in fully franked dividends. At the current share price, this sees Telstra stock trading on a 3.8% trailing dividend yield.
Of course, those share price gains and dividend payments have all come and gone.
Looking ahead, is the ASX 200 stock still a good passive income buy?
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Tapping Telstra shares for passive income
Shaw and Partners' Jed Richards recently ran his slide rule over Telstra shares (courtesy of The Bull).
"Strong cashflows from NBN infrastructure and rising mobile data consumption support earnings growth," he said.
Digging into Telstra's latest half-year results, Richards noted:
EBITDA [earnings before interest, taxes, depreciation and amortisation] of $4.2 billion in the first half of fiscal year 2025 was up 6% on the prior corresponding period, and net profit after tax of $1.1 billion grew 7.1%.
The fully franked interim dividend of 9.5 cents a share was up 5.6%.
Although Richards has a hold recommendation on Telstra shares for now, he highlighted their appeal to ASX passive income investors.
"Its Connected Future strategy and consistent dividend increases enhances appeal," he said.
"Telstra's defensive profile suits income investors seeking stability and moderate capital growth after the shares have risen from $4.06 on March 17 to trade at $4.87 on June 5." Richards concluded.
What's the latest from the ASX 200 telco?
Telstra announced its Connected Future 30 strategy on 27 May.
"We're at an inflection point, as technology and connectivity are transforming again," Telstra CEO Vicki Brady said.
She noted that the strategy leverages the company's "leadership in mobiles and digital infrastructure, steps up its focus on cost discipline and efficiency across the business, and delivers consistent growth and value for shareholders".
Brady added:
Customer needs are changing, and the connectivity we provide has got to get more sophisticated and flexible. How we anticipate and meet changing needs will be crucial.
There's no version of the future that doesn't rely on technology, and it all needs to be connected. As a connectivity and digital infrastructure business with a long history of innovation, this is a massive opportunity for us.
Telstra shares closed up 0.4% on the day of the announcement.
