Shares in Telstra (ASX: TLS) are down another 5 cents or 1% to $4.80 today, dropping more than the S&P/ASX 200's (Index: ^AXJO) (ASX: XJO) fall of 0.4%.
Some commentators are suggesting Australia is now at the bottom of the interest rate cycle, and the next move in interest rates is up, with dividend favourite stocks like Telstra, Westpac (ASX: WBC) and Woolworths (ASX: WOW) all taking it on the chin.
Telstra shares have fallen 6.4% or 33 cents from their August peak, although 14 cents of that fall is from when the shares went ex-dividend.
Not too long ago I laid out a pathway for Telstra shares to rise to as high as $6.
Nothing much has changed in the past few weeks, apart from the share price, and the possibility of interest rates rising. Sure, interest rates will rise at some stage, but the Australian economy is hardly in rude health as we continue to transition away from the mining boom. I think we're still some way from interest rates rising.
At $4.80, Telstra shares trade on an attractive dividend yield of 5.8%. You're not going to become a millionaire overnight by buying Telstra, but that safe dividend, in a still low interest rate environment, remains attractive.
Telstra's dividend yield is attractive, but there are plenty more fish in the sea.
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Of the companies mentioned above, Bruce Jackson has an interest in Telstra, Westpac and Woolworths
