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).
Analysts are forecasting 31.5 cents in FY16, 32.5 cents in FY17 and 33.5 cents in FY18. Given the telco's past history of steady dividends, that's likely to be fairly close to what the company will pay out.
At today's price of $5.42, that equates to a yield of around 5.8%, or 8.3% if you include franking credits.
With question marks over their current dividend levels and whether they might be forced to raise even more capital, Australia and New Zealand Banking Group (ASX: ANZ), Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC) might be out of favour with many investors.
Another income stalwart, Woolworths Limited (ASX: WOW) has a few problems it needs to sort out and its dividend looks likely to be cut next year.
Foolish takeaway
For investors looking for a solid blue chip paying decent fully franked dividends, the recent price falls in Telstra's share price might offer an opportunity.
