Thursday, December 3, 2015

Today's Telstra share price is offering a 5.8% fully franked yield | Motley Fool Australia

Today's Telstra share price is offering a 5.8% fully franked yield | Motley Fool Australia: "The Telstra Corporation Ltd (ASX: TLS) share price is down 1.7% today, about the same as the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO).

At lunchtime, shares were trading at around $5.41, a far cry from the $6.74 the share price reached in February. For the 2015 year, Telstra’s shares are down over 9%, while the index is down just 5%.

In January this year, noted stockbroker Charlie Aitken lifted his share price target for the telecommunications giant to $7.00,
saying that any companies with bond-like characteristics will outperform. Telstra is often referred to as being ‘bond-like’ because of its strong, stable dividend.

The telco paid out 28 cents in fully franked dividends each year between 2005 and 2014, when the dividend was upped slightly to 29.5 cents and then 31.5 cents last financial year (FY15)."

At today’s price of $5.42, that equates to a yield of around 5.8%, or 8.3% if you include franking credits.

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