Shares in telco giant Telstra Group Ltd (ASX: TLS) have been somewhat of a mixed bag in 2024.
The stock is down nearly 4% this year to date but recently caught a bid at its 52-week lows of $3.42 per share in late May.
Telstra shares took another dive into the red on Monday. They finished the session at $3.81 per share, down 4% on the day.
Being one of Australia's most iconic companies, investors might be wondering if this is an opportunity to buy.
Let's see what the experts are saying.
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Telstra shares' dividend appeal
Being Australia's largest telecommunications company, Telstra shares continue to be a favourite among dividend investors.
Goldman Sachs recently outlined the company's dividend strength and earnings stability. The broker highlighted Telstra's decision to increase mobile prices as a positive move, demonstrating "mobile market rationality".
It subsequently expects Telstra to deliver fully franked dividends of 18 cents per share in FY 2024 and 19 cents per share in FY 2025.
Based on the current share price of $3.81, these dividends yield 4.7% and 4.9%, respectively.
Buy now?
One of Telstra's strengths is operating in the traditionally defensive telecommunications industry, which can provide stability even in volatile markets.
Goldman analysts see a meaningful medium-term opportunity for Telstra to monetise its 'InfraCo' fixed assets, which could be worth between $22 billion and $33 billion. Quite the range.
The broker says Telstra's recurring NBN payment stream, valued between $14.5 billion and $17.9 billion, offers further potential for value realisation.
Ultimately, it says that its earnings growth and mobile business support a buy rating on Telstra shares.
The broker's price target of $4.30 implies a potential upside of approximately 13% from the current price.
Meanwhile, consensus estimates rate Telstra shares as a buy as well. This is made up of thirteen buys, two holds and one sell rating.
Based on this spread, the overwhelming majority of analysts are bullish on Telstra and rate it a buy. Every pullback in its share price only increases the value gap between their price targets.
Foolish takeaway
While the recent decline in Telstra shares may concern some investors, some brokers believe it could also present a buying opportunity.
Based on the company's recent developments, the same analysts project strong dividends for FY24 and FY25.
As always, it's essential to conduct your own due diligence and consider your financial goals before making any investment decisions.
