Telstra Group Ltd (ASX: TLS) has built a reputation as a reliable, income-focused share.
But is the telco a good buy this month? I think it is.
Here are three reasons I would consider buying Telstra shares today.
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The earnings base is becoming more consistent
Telstra's core business continues to deliver. Its mobile division remains a key driver of growth, supported by customer additions and higher average revenue per user. That has flowed through to earnings, with the company reporting growth across multiple parts of the business in the first half of FY26.
What stands out to me is how this is being achieved. The company is seeing operating leverage come through, supported by cost control and efficiency gains. It reduced underlying operating expenses during the first half, which helped offset cost pressures and supported profit growth.
This combination of revenue growth and cost discipline is important. It points to a business that is becoming more predictable and easier to manage, which tends to support more stable earnings over time.
Capital returns
There is more to Telstra than the dividend alone.
The company lifted its interim dividend to 10.5 cents per share in February and continues to run a large buyback program, which has been increased to $1.25 billion.
That combination can have a meaningful impact on returns.
Dividends provide a steady income stream, while buybacks reduce the number of shares on issue and support earnings per share growth. Over time, that can help lift both earnings per share and dividends per share.
Telstra is also generating the cash to support this approach, which is what gives me confidence in its sustainability.
Its position in the market remains strong
Telstra's role in Australia's telecommunications network is well established.
Demand for connectivity continues to grow as more devices, services, and businesses rely on mobile and data networks. Telstra remains a key provider across mobile, fixed, and infrastructure, which supports a large base of recurring revenue.
The company is also continuing to invest in its network and technology. This includes expanding its fibre footprint and improving service quality, which helps retain customers and supports pricing.
Over time, that kind of investment tends to reinforce its position rather than weaken it, which is important for a business built around long-term infrastructure.
Foolish takeaway
Telstra offers steady earnings, strong cash flow, and consistent capital returns.
With those pieces in place, I see it as a reliable income-focused investment that can continue to deliver over time, supported by a business that is becoming more stable and predictable.
