Hoping to ring in the latest Telstra dividend? Here's what you need to do

Investors have until the end of the day to lock in the latest Telstra dividend.

| More on:
A senior couple discusses a share trade they are making on a laptop computer

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

Key points

  • Telstra shares have risen 5% since the release of the company's FY22 results 
  • The company's shares are set to trade without dividend rights tomorrow
  • Eligible shareholders will receive a payment of 8.5 cents per share on 22 September

Shares in Telstra Corporation Ltd (ASX: TLS) have roared higher since the company reported its full-year results and final dividend on 11 August.

After delivering a robust financial scorecard, the Telstra share price jumped to an eight-month high as of yesterday's market close.

On Monday, the telco provider's shares finished at $4.15 apiece, up 0.73%.

Below, we take a look at the company's latest dividend announced to the market.

Telstra shares near ex-dividend date

There could be a short-term boost for the Telstra share price today as investors look to secure the final dividend.

The ex-dividend day falls on Wednesday.

This means if you buy the telco's shares today and hold them until tomorrow, you'll be eligible for the dividend.

It is worth noting that when a company reaches its ex-dividend day, historically its shares tend to fall in proportion to the dividend paid out. This is because some shareholders who have locked in the dividend will then sell to gain a quick profit and move on to the next investment.

When is pay day for Telstra shareholders?

If you manage to secure the Telstra dividend, you'll receive a payment of 8.5 cents per share on 22 September.

The latest dividend represents a lift of 6.25% on the prior corresponding period, and is the first increase since 2015.

The dividend is also fully franked.

Management said the improved dividend was a result of the company's successful T22 strategy and the strength of its balance sheet.

Furthermore, it noted its confidence in the T25 strategy reaching high-teens earnings per share (EPS) growth from FY21 to FY25.

The total dividend for the year comes to 16.5 cents per share.

This includes an increase in the ordinary dividend from 10 to 13.5 cents per share, and will see around $1.9 billion returned to shareholders.

It also marks the end of the nbn-related one-off special dividend given the nbn rollout is complete.

Telstra share price snapshot

Despite climbing of late, the Telstra share price has remained flat following extreme volatility on the ASX in 2022.

In contrast, the S&P/ASX 200 Communication Services Index (ASX: XTJ) has fallen 8.6% over the same period.

Telstra commands a market capitalisation of roughly $47.6 billion and has a dividend yield of 2.67%.

Motley Fool contributor Aaron Teboneras has positions in Telstra Corporation Limited. 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

Two smiling work colleagues discuss an investment or business plan at their office.
Dividend Investing

Analysts say these ASX dividend shares are top buys

Here's what sort of yields they are expecting from these shares.

Read more »

Two elderly men laugh together as they take a selfie with a mobile phone with a city scape in the background.
Dividend Investing

Forget term deposits and buy these ASX dividend stocks

Analysts think these stocks could be buys for income investors.

Read more »

A woman sits on sofa pondering a question.
Dividend Investing

Do Fortescue shares beat the big banks for dividend income?

Is Fortescue's 10%-plus dividend yield too good to pass up?

Read more »

A mining worker wearing a white hardhat and a high vis vest stands on a platform overlooking a huge mine, thinking about what comes next.
Dividend Investing

BHP shares have fallen out of the global top 20 dividend payers. Here's why

Global dividends continue to climb.

Read more »

A young woman holds her hand to her mouth in surprise as she reads something on her laptop.
Dividend Investing

Buy these impressive ASX dividend shares for market-beating returns

Analysts are tipping these shares to provide great yields and major upside.

Read more »

Man jumping in water with a floatable flamingo, symbolising passive income.
Dividend Investing

Why I'd buy these top ASX dividend shares before the end of 2025

Now could be the right time to buy these dividend stocks.

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Dividend Investing

Brokers say these ASX dividend stocks are buys right now

Income investors might want to check out these buy-rated stocks this week.

Read more »

$100 Australian notes on top of each other.
Dividend Investing

These buy-rated ASX dividend stocks offer 7%+ yields

Analysts expect these buy-rated stocks to provide income investors with big yields.

Read more »