Looking to bank the boosted Telstra dividend? You better hurry!

Telstra caught the attention of passive income investors with a 10% dividend boost.

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When Telstra Group Ltd (ASX: TLS) reported its full-year FY 2026 results on 13 August, investors were greeted with a 10.5% increase in the final Telstra dividend.

But if you're looking to bank that increased passive income payout, time is running short.

Here's what you need to know.

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Image source: Getty Images

When do I need to own shares to score the boosted Telstra dividend?

The S&P/ASX 200 Index (ASX: XJO) telco reported some solid results for FY 2026.

Among the highlights, Telstra's underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 4% year on year to $8.3 billion.

And on the bottom line, underlying net profit after tax (NPAT) of $2.5 billion was up 4.9% from FY 2025.

This saw management declare a 10.5 cents per share final Telstra dividend, franked at 90%. That's up from the 9.5 cents per share final dividend paid out last year.

And at the recent Telstra share price of $4.73, it equates to an instant yield of 2.2%. Adding in the 10.5 cents per share interim dividend, and the stock trades on a partly franked yield of 4.4%.

Now, if you want to bank the upcoming payout, you'll need to own Telstra shares at market close on Tuesday. The ASX 200 stock trades ex-dividend on Wednesday, 26 August. You can then expect to be paid on 24 September.

Commenting on the Telstra dividend, CEO Vicki Brady said:

The final dividend is consistent with our Capital Management Framework, and our aim to deliver a sustainable and growing dividend. Our dividend is supported by strong cash earnings, and our Connected Future 30 ambition remains to deliver mid-single digit growth in cash earnings.

Should you buy Telstra shares today?

Red Leaf Securities' John Athanasiou recently analysed the outlook for Telstra shares (courtesy of The Bull).

"Telstra's investment case has improved materially, supported by a stronger mobile business, better earnings momentum and improving shareholder returns," he said.

According to Athanasiou, who issued a hold recommendation on Telstra:

Its mobile network remains the company's key competitive advantage, providing pricing power, scale and dependable cash generation. The market has increasingly recognised Telstra's defensive qualities, which, we believe, are reflected in the share price.

Telecommunications also remains a capital intensive industry, requiring significant ongoing investment to maintain network leadership.

As for the Telstra dividend, Athanasiou noted:

For existing shareholders, the combination of relatively stable earnings, dividends and a strong mobile franchise remains attractive. However, for new investors, the upside appears less compelling after a recent re-rating.

Motley Fool contributor Bernd Struben 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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