Looking ahead into 2015 there's a number of similarities to the forecasts of leading Australian economists and market commentators.
These are:
#1 – Slowing economic growth in the wake of falling mining investment.
#2 – Lower interest rates – partly thanks to #1.
#3 – A lower dollar, largely because of #2 and #3.
For investors in ASX-listed companies that means dividends will still be vogue. Especially the fully franked variety.
And one of the best dividend stocks on ASX is Telstra Corporation Ltd (ASX: TLS). The reliability of its fully franked dividends has been reflected in its fantastic share price performance over past four years.
Currently $6.02, its share price is within touching distance of its 13-year high of $6.05. At today's levels it's not a standout buy.
However Telstra has more than just a forecast 5% fully franked dividend to offer its long-term shareholders.
It's also a very defensive stock and enjoys a monopolistic-like dominance over the Australian mobiles market. This gives it a beta of just 0.5, meaning its share price is not overly volatile.
To complement its local success, it is also pushing strongly into larger Asian markets, providing scope for significant long-term growth. Just recently the company announced the acquisition of subsea cable owner Pacnet. It has also formed key joint venture partnerships in India and Indonesia and owns a large stake in China's number one automotive sales website, Autohome.com.cn.
Foolish Takeaway
With interest rates tipped to stay low in 2015 Telstra's dividend, defensive characteristics and growing international business makes it a firm hold for current shareholders. However, for buyers, its valuation leaves a lot to be desired.
