Telstra Group Ltd (ASX: TLS) shares have always been a favourite of income investors hunting for dividends amongst the S&P/ASX 200 Index (ASX: XJO). Ever since this telco first floated on the Australian stock market back in the 1990s, it has built up a well-deserved reputation as a generous dividend payer.
Of course, the dividends from Telstra shares are not what they used to be. Back in the days when the company was paying more than 30 cents per share every year, Telstra would routinely trade on a dividend yield of over 6%, complete with the full franking credits the company was also famous for.
However, as more than a few investors may recall, the company revealed a major dividend cut back in 2017, spurred by the disruption of its old business model thanks to the rise of the NBN. This saw Telstra slash its half-yearly dividend from 15.5 cents per share in late 2017 to 11 cents per share by the first half of 2018. By 2019, Telstra was down to paying out 8 cents per share every six months.
Since then, however, Telstra's dividends have stabilised and have now started growing again. As has its share price.
After hitting lows of just above $2.50 a share back in 2020, the company hit a nine-year high of $5.14 back in August. It's been a lucrative ride back up for anyone lucky enough to buy the telco back at the bottom.
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How large is the dividend from Telstra shares right now?
But let's get the telco's dividend yield today.
So, over 2025, Telstra has now sent out its usual two dividend payments. The first was the interim dividend worth 9.5 cents per share that shareholders received in March. The second and final dividend, also worth 9.5 cents per share, was paid in September. Naturally, both payments were fully franked. Both payments were also up 5.56% from the 9 cents per share that both dividends amounted to last year.
At the current Telstra share price of $5.06, these give the telco a trailing dividend yield of 3.75%.
As any dividend investor knows, however, a dividend yield always reflects the past, not the future. And even though Telstra has historically been a reliable provider of dividend income, there is never a guarantee that buying a dividend share will lock in whatever yield it may be trading at.
Saying that, at least one expert thinks the dividend pay rises will keep on coming for Telstra shareholders. As my Fool colleague James reported just yesterday, analysts at Macquarie reckon Telstra will be able to fund an annual total of 20 cents per share in dividends over FY2026, rising to 21 cents per share the following financial year. That would push Telstra's yield back over 4% if that is the case (at the current price, of course). Let's see if Macquarie is on the money.
