Shares of the ASX-listed Telstra Corporation Limited (AU:TLS) offer an attractive dividend yield of nearly 5%, exceeding the sector average of 2.54%. Going forward, the company plans to enhance its fully franked dividends as part of its capital management strategy.
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In terms of capital appreciation, analysts are moderately optimistic about the stock, forecasting a very small upside from current levels. Year-to-date, TLS stock has witnessed only a 1% gain.
Telstra Group offers a complete range of communication and technology services in Australia. Its mobile segment is the largest in the country, with the widest user base and coverage.
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What is the Dividend for Telstra in 2024?
For the second half of FY24, Telstra announced a fully franked final dividend of AU$0.09 per share. This, combined with the franked interim dividend of AU$0.09 per share led to a total dividend of AU$0.18 for FY24. The FY24 dividend marks a growth of 5.8% over the total dividend of AU$0.17 paid last year.
Telstra Reports Mixed FY24 Results
Last month, Telstra reported its FY24 results, driven by robust revenue growth in its Mobile division. Mobile services revenue increased 5.6%, while average revenue per user grew around 2.1%. In FY24, the company gained 560,000 new customers, with its network now supporting 26 million mobile services.
On the flip side, the company’s NPAT (net profit after tax) decreased 12.8% to AU$1.8 billion due to higher costs incurred in the Enterprise business.
Is Telstra a Good Stock to Buy?
According to TipRanks’ rating consensus, TLS stock has received a Moderate Buy rating based on seven Buys, one Hold, and two Sell recommendations. The Telstra share price target is AU$4.08, which is 2.04% above the current price level.
