If I buy $6,000 of Telstra shares, how much dividend income will I receive?

Telstra could be a wise choice for dividend income in FY27.

There are a number of large ASX shares that offer investors sizeable dividend yields. In my view, Telstra Group Ltd (ASX: TLS) shares could be the best ASX blue-chip stock for dividend income if someone wanted to invest $6,000.

It may not have the biggest dividend yield, but I think it offers a pleasing mix of a growing dividend and a solid dividend yield.

In FY26, the ASX telco share grew its annual dividend income by 10.5% to 21 cents per share. It has increased its dividend five years in a row and analysts predict the dividend can continue rising at a solid rate.

Let's take a look at what's projected for FY27 and what that would mean for a $6,000 investment in Telstra shares.

Man holding Australian dollar notes, symbolising dividends.

Image source: Getty Images

Projected dividend income for the 2027 financial year

The business offers very defensive earnings – being connected to the internet seems important for a lot of households, businesses and so on.

As Australia's digitalisation increases, more devices require subscriptions, helping boost Telstra's subscriber numbers each year (including its wholesale division, which supports other smaller telcos). Therefore, it looks defensive with growth attributes, in my view.

In FY26, the company managed earnings per share (EPS) growth of 5.3%, cash EBIT growth of 8%, cash net profit growth of 11.6% and cash EPS growth of 13.8%.

Management think that cash EBIT could grow between 1.9% and 6.2% in FY27, which I believe bodes well for cash EPS (and the dividend).

Using the projection on Commsec, the business is projected to grow its annual dividend income per Telstra share by 4.75% in FY27 to 22 cents per share.

Excluding franking credits, that's a potential dividend yield of 4.5%. Assuming the same level of franking as FY26, it'd be a grossed-up dividend yield of 6.3% including franking credits.

What would a $6,000 investment in Telstra shares create?

At the time of writing, a $6,000 purchase of Telstra stock would buy 1,234 shares.

With those shares, for FY27, the shareholder is therefore projected to receive $271.48 of dividend cash and approximately $376.19 overall dividend income, including the franking credits.

Collectively, analysts seem quite positive about the company's valuation right now. According to Commsec, 16 analyst ratings currently cover the business: nine are buys, six are holds, and one is a sell.

While Telstra isn't trading near 52-week lows, it looks attractive to me. Of course, there could be even better ASX share opportunities out there to buy.

Motley Fool contributor Tristan Harrison 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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