5 reasons to hold Telstra shares until 2030

Telstra isn't exciting, but for income and resilience, that may be exactly the point.

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When I think about stocks I could be comfortable holding through multiple market cycles, Telstra Group Ltd (ASX: TLS) is one that consistently makes the list. 

It is not a high-growth story, and it probably never will be. But for long-term investors, especially those focused on income and resilience, I think Telstra has several qualities that make it worth holding well beyond 2026 and into the next decade.

Here are five reasons I would be happy to hold Telstra shares until 2030.

1. A defensive business that still matters

Telstra sits at the centre of Australia's communications infrastructure. Mobile, broadband, enterprise connectivity, and digital infrastructure are not optional services. They are essential. That gives Telstra a level of defensiveness that many ASX shares simply do not have.

Even during economic slowdowns, consumers and businesses tend to prioritise staying connected. For me, that makes Telstra a useful stabiliser in a diversified portfolio, particularly when markets become volatile.

2. An attractive and relatively reliable dividend

At current prices, Telstra shares offer a dividend yield of around 4%. That may not sound extraordinary, but in the context of a large-cap defensive stock, I think it is appealing.

More importantly, Telstra's dividend has been supported by improving earnings, disciplined cost control, and capital management initiatives such as share buybacks. While dividends are never guaranteed, Telstra's recent financial performance suggests management is focused on maintaining shareholder returns while still investing in the business.

3. Network leadership remains a genuine advantage

Telstra continues to invest heavily in its mobile and fixed networks. Management has been clear about the importance of network quality, reliability, and coverage as a competitive advantage.

For long-term investors, this matters. Telecommunications is capital-intensive, and not every competitor can match Telstra's scale or balance sheet. I see this ongoing investment as a way for Telstra to protect its market position rather than chase risky growth.

4. A clear strategy heading toward 2030

Telstra's Connected Future 30 strategy is focused on connectivity, digital infrastructure, and treating the network as a product in its own right. I like that the strategy is not built on heroic assumptions about new revenue streams. Instead, it emphasises execution, efficiency, and getting more value from assets Telstra already owns.

I am not assuming this strategy will automatically succeed. But I do think the direction is sensible and aligned with Telstra's strengths, which reduces the risk of unpleasant surprises. It also has a strong track record after executing its T22 and T25 strategies successfully.

5. A role in a long-term portfolio

I don't see Telstra Group shares as one to trade in and out of based on short-term news. For me, it fits better as a long-term holding that provides income, resilience, and exposure to essential infrastructure.

By 2030, Australia is likely to be even more dependent on high-quality connectivity. While the competitive landscape may evolve, I find it hard to imagine a scenario where Telstra becomes irrelevant.

Foolish Takeaway

Telstra is unlikely to be the most exciting ASX share in any given year. But when I look at defensiveness, dividends, infrastructure ownership, and strategic clarity, I think it earns its place as a long-term hold. 

For investors who value stability alongside income, I think holding Telstra shares until 2030 is a reasonable and considered choice rather than a bold gamble.

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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.

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