How much passive income would a $15,000 investment in Telstra shares pay?

Can investors call on Telstra for appealing dividends?

| More on:
Different Australian dollar notes in the palm of two hands, symbolising dividends.

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

Owners of Telstra Group Ltd (ASX: TLS) shares regularly get a good dividend. In this article, we're going to look at how much passive income we could get by investing $15,000 at the current Telstra share price.

Most readers may already know that Telstra is the largest telecommunications business in Australia, with what's seen as a strong market position in the 5G space.

The business has been paying passive dividend income for decades and recently started increasing the payments again to shareholders.

How large will the next dividend be?

In FY23 the business paid an annual total of 17 cents per share to shareholders. That represented a fully franked dividend yield of 4.4% or a grossed-up dividend yield of 6.25%

However, those dividend payments are in the past and not necessarily representative of what the next 12 months of dividends will be.

Telstra's board of directors are the ones that decide what the size of the dividend payments will be. But, analysts can make a projection about what they think the upcoming dividend will be.

On Commsec, the current projection is that owners of Telstra shares will receive an annual dividend of 18 cents per share. That translates into a fully franked dividend yield of 4.6% and a grossed-up dividend yield of 6.6%.

How much passive income would a $15,000 investment in Telstra shares generate?

If we assume that Telstra will indeed pay 18 cents per share, in FY24, then investors could get a cash dividend of $690, and including franking credits it could result in grossed-up dividend income of approximately $986.

With a $15,000 investment, it could generate almost $1,000 of passive dividend income.

But, there's more to the potential income than just what happens in the next 12 months.

Estimates on Commsec suggest that profit could grow in FY25 and the dividend could increase again to 19 cents per share.

With that projection in mind, a $15,000 investment today might pay $735 of cash dividends and $1,050 of grossed-up dividend income in FY25.

Can the ASX telco share keep growing profit?

A number of factors could mean that Telstra is able to grow its profit in at least two or three of the next financial years.

Telstra is growing its number of subscribers, it's increasing prices for mobile and broadband subscribers, it's experiencing the return of roaming revenue from visitors to Australia, it's aiming to reduce costs and it's diversifying its earnings geographically (into Asia) and in different sectors (such as healthcare and perhaps cybersecurity).

If profit keeps growing, then the business could continue to increase its annual dividend income.

Should you invest $1,000 in Accent Group Limited right now?

Before you buy Accent Group 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 Accent Group 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 7 February 2025

Motley Fool contributor Tristan Harrison 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 Communication Shares

Investor looking at smartphone and considering Evolution's share purchase plan
Communication Shares

Own Telstra shares? Here's what to watch in next week's half-year results

Here's what analysts are expecting from the telco giant during the first half.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Communication Shares

Missed out on Superloop stock? My favourite ASX telco stock to buy and hold

The ASX telco space is an exciting industry for opportunities.

Read more »

Two women happily smiling and working on their computers in an office
Dividend Investing

Which ASX 200 communications share will pay the best dividend yield in 2025?

Several communications stocks are expected to pay dividend yields above the ASX 200 Index average of 4%.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Communication Shares

Is this my chance to buy Telstra shares?

After drifting lower, I’m considering whether this stock is an opportunity.

Read more »

Man smiling at a laptop because of a rising share price.
Communication Shares

This ASX 200 stock just hit an all-time high and UBS still tips 24% upside

Fear not buying this ASX 200 communications stock despite it trading at a record high, says UBS.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Communication Shares

Are Tuas shares the next Telstra?

I think this Asian telco has an exciting future.

Read more »

Five young people celebrate outside with sparklers
Dividend Investing

1 ASX dividend stock down 47% in 12 months I'd buy right now

These stocks are a real opportunity, in my view.

Read more »

Woman and man calculating a dividend yield.
Communication Shares

3 insiders buy up shares in ASX All Ords stock following crash

Shares were bought swiftly following the crash.

Read more »