Owning Telstra Group Ltd (ASX: TLS) shares has come with a reputation for receiving good dividend income. Therefore, we should take a look at just how much passive income the ASX telco share is projected to pay for investors.
As the biggest telco in Australia, it comes with a number of advantages, including its leading mobile network with the most coverage, a reputation for reliability and significant profitability.Making a profit is what being in business is all about.
Plus, making a positive net profit after tax (NPAT) means the business is able to pay dividends.
With Telstra in a period of profit growth, thanks to its rising subscriber numbers and increasing average revenue per user (ARPU), it's able to take advantage of the investments it has made in the last few years into its 5G network, putting it ahead of competitors. It's now able to benefit from the cash flow and operating leverage that have been unlocked, flowing to dividend payments.
Let's take a look at how large the dividend payments could become in the next few years. Just remember, forecasts are not guarantees. It's up to the board of directors to decide on the declared dividend payments.
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FY26
We're currently in the 2026 financial year, so investors won't need to wait too long for the payments related to FY26.
According to the forecasts from broker UBS, Telstra is predicted to pay an annual dividend per share of 21 cents in the 2026 financial year, representing a pleasing increase of 10% from FY25.
FY27
In the 2027 financial year, the passive income could get even better for owners of Telstra shares, if the broker UBS is correct with its forecasts.
The FY27 payout could be 22 cents per share, which would represent a year-over-year increase of 4.75%.
FY28
Further steady growth of the passive income is expected for the Telstra dividend per share in the 2028 financial year, according to UBS.
Owners of Telstra shares could receive an annual dividend per share of 24 cents in FY28, representing a year-over-year increase of 9%.
FY29
The 2029 financial year could be the strongest year yet for these projections, with the suggested payout growing to a possible 27 cents per share. That would represent another year-over-year increase, representing a rise of 12.5%.
FY30
In this final year of projections, the 2030 financial year could be the best one of all in terms of the dividend payments, with regular profit growth also predicted for the financial years between FY26 to FY30.
FY30 could see an annual dividend per share of 30 cents, according to UBS. This would be a year-over-year increase of 11%. It would also be 58% higher than the FY25 payout, representing significant growth.
If the FY30 payout comes true, it'd represent a future grossed-up dividend yield of close to 9%, at the time of writing.
