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Telstra Group Ltd (ASX: TLS) shares have long been favored by income investors, especially as the telco giant's earnings and dividend have returned to growth in recent times. The positive trend continued on Thursday as Telstra released its half-year results, showcasing further growth and a dividend increase.
The latest Telstra dividend follows a 1.2% increase in total income to $11,700 million and a 3.1% lift in underlying EBITDA to $4,001 million. This growth, driven primarily by its mobile business, offsets weakness in other segments. ASX communication stocks, including Telstra, are closely watched amidst evolving consumer demand and technological shifts. Telstra's resilient performance underscores the importance of its mobile business amid sector challenges. Investors consider Telstra's financial results and dividend payouts when assessing telecommunications investment opportunities.
Despite the results slightly falling short of expectations, Telstra's board announced a 5.9% increase in its fully franked interim dividend to 9 cents per share. This move aligns with the company's capital management framework aimed at maximizing the fully franked dividend and seeking to grow it over time.
For investors eyeing the upcoming dividend payout, it's crucial to own Telstra shares before they trade ex-dividend on 28 February. Failure to do so means missing out on entitlement to the dividend when it's distributed to shareholders. The scheduled payment date for the 9 cents per share fully franked interim dividend is set for 28 March.
Considering Telstra's current share price, this dividend translates to an attractive 2.3% dividend yield. Moreover, if the company maintains this dividend rate with its full-year results in August, investors could enjoy a 12-month yield of 4.6%.
In summary, Telstra's sustained growth trajectory and dividend increase underscore its appeal to income-oriented investors, offering both current income and potential for future growth.
