One of the most popular options on the Australian share market for income investors is the Telstra Group Ltd (ASX: TLS) dividend.
For over two decades, the telco giant has been sharing its profits with its shareholders through thick and thin.
The good news is that times are currently thick and the Telstra dividend increased in FY 2023. But if you want to receive it, you will have to act fast.
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The Telstra dividend
Earlier this month, Telstra released its FY 2023 results and revealed a 5.4% increase in total income to $23.2 billion and a 9.6% lift in underlying EBITDA to $8 billion. The key drivers of this growth were the company's Mobile and International businesses.
For example, the key Mobile business saw its EBITDA jump 15.1% to $4,602 million. Whereas the International business, which benefited from acquisitions, saw its EBITDA increase 84.2% to $713 million.
In light of this solid earnings growth, the Telstra board elected to increase its dividend by 3% to 17 cents per share. This comprises fully franked interim and final dividends of 8.5 cents each.
The latter dividend will soon be paid to eligible shareholders on the payment date of 28 September.
But how do you become eligible to receive this Telstra dividend? Well, to be classed as eligible you will need to own the company's shares before they trade ex-dividend on Wednesday.
This means that if you're not on the share register at the close of play on Tuesday, you won't be receiving this payout.
Should you buy Telstra shares?
Goldman Sachs believes investors should be buy Telstra shares right now. In response to its results, the broker put a buy rating and $4.70 price target on them.
This implies an almost 18% upside for investors over the next 12 months, as well as the 8.5 cents per share final dividend.
