Bought Telstra shares last June? Guess what kind of dividend yield you're earning today

Some ASX 200 investors will be earning a significantly higher yield from their Telstra shares than others.

| More on:
A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares

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 a lengthy track record of delivering two fully franked dividend payments each year
  • The ASX 200 telco trades on a trailing yield of 3.9%
  • Investors who bought the dip last June will be earning a yield of more than 4.5%

Telstra Group Ltd (ASX: TLS) shares have strongly outperformed the benchmark over the past 12 months.

Since this time last year, the S&P/ASX 200 Index (ASX: XJO) telco has gained 10%.

Created with Highcharts 11.4.3Telstra Group PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

That compares quite favourably to the 0.8% loss posted by the ASX 200 over this same period.

But Telstra shares offer more than the potential for gains in the share price.

The stock is also well-known for delivering investors with a reliable passive income stream.

The company has a lengthy track record of paying two annual fully franked dividends. It even came through during the pandemic addled year of 2020.

During the past year, Telstra paid out a final dividend of 8.5 cents per share on 21 September. The telco paid its interim dividend, also 8.5 cents per share, a few weeks ago, on 31 March.

That comes out to a total, fully franked payout over the last 12 months of 17 cents per share.

At the current Telstra share price of $4.37, that equates to a trailing yield of 3.9%.

Or a handy $39 in passive income from a $1,000 investment.

While that yield will be welcomed by most shareholders, particularly coming atop the share price gains, some ASX 200 investors will be earning a significantly higher yield from their Telstra shares.

Did you take the plunge last June?

Telstra shares came under pressure alongside the broader market in the first half of June last year.

On 14 June, shares closed the day trading for $3.75 apiece.

Brave, lucky, or perhaps well-advised investors who bought shares towards the end of that day would have still been eligible for both of the company's dividend payouts.

And they would be earning significantly more yield from their Telstra shares today than most shareholders.

If you'd bought shares on the day you'd be earning a fully franked yield of 4.5%.

Or a welcome $45 in passive income from a $1000 investment. Not to mention a 16.5% gain in the share price.

And that is only 10 and a half months.

While trying to time these kinds of dips comes with its own set of risks, when you get it right it can be quite rewarding.

How have Telstra shares performed longer-term?

As long-term investors, it pays to look beyond a company's performance over the past few months.

As for Telstra shares, they've gained 35% over the past five years. That figure doesn't include the twice-annual dividends.

Motley Fool contributor Bernd Struben 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 Group. 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

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Share Market News

Buy these excellent ASX dividend shares for 5%+ yields

Analysts expect above-average dividend yields from these shares.

Read more »

farm workers examine an agricultural crop
Dividend Investing

Why I think this is a top ASX 300 stock to buy right now for passive income

Rural Funds can provide investors with a lot of income at the current valuation.

Read more »

A couple sit in front of a laptop reading ASX shares news articles and learning about ASX 200 bargain buys
Dividend Investing

1 ASX dividend stock down 40% I'd buy right now

This business could be a very good choice for healthy dividends.

Read more »

Happy young woman saving money in a piggy bank.
Dividend Investing

How to make $10,000 of passive income a year

Here's how to make the share market your own personal ATM.

Read more »

Blue chips with stock written on them.
Dividend Investing

2 ASX blue-chip shares offering big dividend yields

These businesses have a lot to offer income-focused investors.

Read more »

Woman laying with $100 notes around her, symbolising dividends.
Dividend Investing

How much dividend income does the average ASX investor earn?

It's an impressive amount!

Read more »

Person holding Australian dollar notes, symbolising dividends.
Dividend Investing

Which ASX 200 sector paid the best dividends in FY25?

We reveal the dividend returns of each of the 11 market sectors in FY25.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop.
Dividend Investing

Are CBA shares still a good buy today for passive income?

Looking to earn passive income from ASX dividend stocks? Here’s my take on CBA shares.

Read more »