Here's the Telstra dividend forecast through to 2024

The Telstra dividend could be increasing in the near future…

| More on:
Two male ASX investors and executives wearing dark coloured suits sit at a table holding their mobile phones discussing the highest trading ASX 200 shares today

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

One of the most popular options for income investors on the Australian share market is the Telstra Corporation Ltd (ASX: TLS) dividend.

In light of this, readers may be curious where the telco giant's dividend is heading in the coming years. Let's take a look and see what analysts are saying.

Where is the Telstra dividend heading?

The good news for investors is that the Telstra dividend could be close to increasing for the first time in almost a decade. Though, it may be a little too soon to expect a dividend increase with the company's upcoming full year results.

According to a note out of Goldman Sachs, its analysts are expecting Telstra to declare a fully franked final dividend of 8 cents per share this month. This will bring its full year dividend to a fully franked 16 cents per share, which is in line with what was paid a year earlier.

Based on the current Telstra share price of $4.03, this will mean a yield of approximately 4% for investors.

Next year, in FY 2023, Goldman expects the company to increase its dividend for the first time since 2014 and is forecasting a fully franked dividend of 17 cents per share. This represents a 4.2% dividend yield for any income investors buying shares at today's price.

Pleasingly, the trend is expected to continue in FY 2024, with Goldman forecasting another increase in the Telstra dividend to 18 cents per share. This will mean a fully franked yield of approximately 4.5% for investors.

Is the Telstra share price good value?

Although Goldman Sachs sees value in the Telstra share price at the current level, it isn't enough for a buy recommendation.

The broker currently has a neutral rating and $4.40 price target on the company's shares. This implies a potential return of 9.1% over the next 12 months before dividends and over 13% including them.

Should you invest $1,000 in Rio Tinto Limited right now?

Before you buy Rio Tinto Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Rio Tinto Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Dividend Investing

Hunting for passive income? Here's everything you need to know about the latest NAB dividend

NAB revealed its interim dividend payout this morning.

Read more »

A couple makes silly chip moustache faces and take a selfie on their phone.
Dividend Investing

I think these 2 high-yield ASX dividend shares are buys in May

These businesses offer significant passive income.

Read more »

Wife and husband with a laptop on a sofa over the moon at good news.
Dividend Investing

2 ASX dividend stocks to buy for juicy 5% to 8% yields

These shares are being named as buys for income investors by brokers.

Read more »

Man pointing an upward line on a bar graph symbolising a rising share price.
Dividend Investing

3 growing ASX dividend shares to buy and hold

Analysts are feeling positive about these shares. Let's see what they are forecasting for them.

Read more »

Joyful woman at a beach on the Gold Coast with her arms spread out.
How to invest

How to bank $10,000 a year in passive income from these 3 top ASX shares

Here’s how I’d go about building a $10,000 passive income stream from these top ASX stocks.

Read more »

A woman relaxes on a yellow couch with a book and cuppa, and looks pensively away as she contemplates the joy of earning passive income.
ETFs

3 ASX ETFs to buy for passive income in May

Don't like stock picking but want passive income? Here are three funds that could help you.

Read more »

A businesswoman on the phone is shocked as she looks at her watch, she's running out of time.
Bank Shares

Want to bag the next Westpac shares dividend? Better be quick…

Westpac will pay an interim dividend of 76 cents per share next month.

Read more »

supermarket asx shares represented by shopping trolley in supermarket aisle
Dividend Investing

Should I buy Coles shares for their reliable passive income?

We take a look at Coles’ passive income credentials and the potential for share price gains.

Read more »