Telstra Shares are a favourite for many Australian investor’s and are the 12th largest company by market capitalisation on the ASX. So let’s take a look at the Telstra Dividend Report to see why this is a favourite of many dividend investors.
Telstra shares have actually decreased 45% since 2001, and are down on both the 5-year and 10-year timeframes. The only saving grace for Telstra shares here may be the dividend. The company is up 12.09% this year to a current price of $3.80 per share.
Telstra Dividend Facts
|Dividend Per Share(TTM)||$0.16|
TLS:ASX currently pays a dividend of 4.21% or a quite substantial 6.02% fully grossed up. The company also has a DRP feature allowing holders to reinvest their dividends more efficiently.
If you’re looking to participate in Telstra’s DRP See HERE.
Telstra Dividend Dates 2021
|Full-year results and final dividend announcement date||12th Aug|
|The ex-dividend date for the final dividend||25th Aug*|
|The record date for the final dividend||26th Aug*|
|DRP participation deadline||27th Aug|
|Final dividend payment date||23rd Sep*|
Source: Telstra Investor Calendar
TLS Dividend History Graph
TLS has paid a dividend every year since 2009 and has typically been 100% franked each year that they have been paid. The company typically pays a dividend twice yearly, with a half-yearly and a second payment with the company full-year results.
TLS Dividend Yields Comparison
Telstra’s current gross dividend yield is 6.02%. This is slightly higher than the major banks (CBA, WBC, NAB, and ANZ). It is also slightly higher than the market average of 4.7%.
You can see below that TLS pays one of the highest gross dividend yields in the ASX20 and significantly outperforms holding cash in a term deposit, which has been assumed at 1%.
Current Bank Term Deposit Interest Rates. The best term deposit rate which we could find at the time of writing was JudoBanks’s 0.99% term deposit.
TLS Share Price
The Telstra share price has been increasing this year and is currently up 12.09% this year to date.
The company has a market capitalisation of A$45.1billion and trades on a price to earnings ratio of 25.50.
Telstra Dividend Policy
- The Telstra dividend policy is to pay a fully franked dividend of between 70 to 90 per cent of underlying earnings from FY18.
- In addition to the ordinary dividend, we intend to return in the order of 75 per cent of future net one-off nbn receipts to shareholders over time via fully franked special dividends.
Source: Telstra Investor Centre
When will my Telstra Dividend be Paid?
TLS typically pays dividends twice yearly in line with their half and full-year reports. These dividends are normally paid in February (interim) and August (final-dividend) of each year.
Payment dates are listed on the financial calendar.
TLS Dividend Reinvestment Plan (DRIP)
A DRIP or dividend reinvestment plan allows investors to automatically reinvest their dividends for additional shares in the company. Using this method, the investor will still receive the franking credit and will still be taxed on the cash value of their dividend.
The simplest way to elect to participate in a company’s DRIP is through the related share registry (i.e. Computershare or Link Market Services). In Computershare it’s as simple as going ‘my profile’- ‘Reinvestment plans’ and selecting the company and electing to participate in full or partially. That is either the entire amount or a partial amount of your dividend is reinvested. On Link, you simply click view details of the company of interest and update it in the ‘payments and tax’ section.
For more information check out our ASX DRIP VS NON-DRIP Guide
Telstra Dividend History