In afternoon trade the Telstra Corporation Ltd (ASX: TLS) share price has continued its solid run and is up a further 1% to $3.73.
This brings the telco giant's December return to an impressive 9%.
Is it too late to invest?
Whilst Telstra's shares may no longer be in the bargain bin, I still believe they are good value for patient investors that are in search of income.
At the current share price its shares should provide a fully franked 5.9% dividend over the next 12 months if it delivers on its plan to pay a 22 cents per share dividend.
This is an above-average yield and far better than anything on offer from supposed high interest savings accounts or term deposits.
Furthermore, one leading broker still thinks that Telstra's shares can rerate higher. A recent note out of Morgans revealed that its analysts have an add rating and $4.11 price target on its shares.
This implies potential upside of over 10% from the current share price.
While Morgans is one of the more bullish brokers, it isn't the only one with the equivalent of a buy rating on Telstra's shares.
Earlier this month Deutsche Bank and Macquarie placed buy and outperform ratings, respectively, on its shares. Deutsche has a $4.04 price target and Macquarie's price target is $3.70.
Overall, with market sentiment improving and its share price on a good run, I think Telstra could be a good addition today. I would choose it ahead of rivals TPG Telecom Ltd (ASX: TPM) and Vocus Group Ltd (ASX: VOC).
