Telstra (TLS) is a core holding in the portfolio of many retail investors. They are the dominant telecommunication carrier in Australia with a market-leading position. The business also has infrastructure shares characteristics, which means investors can estimate Telstra’s earnings and dividends with a higher degree of certainty than mining shares or energy shares like Woodside, where the underlying company performance is highly correlated with commodity prices outside of their control.
Telstra Share Price 2021
Telstra is the elephant in the room in the Australian Telecom sector. However, being the largest player in the market has downsides. It is its limited growth opportunities for investors, especially with the loss of its traditional copper network and disruption resulting from the NBN rollout.
The company has recently been focusing on returning capital to investors, which can be attractive for income-focused investors.
Challenger providers like TPG Telecom aim to take market share from TLS by being more nimbler in product development and more competitive pricing.
The company’s most recent results show the potential struggle transitioning from a traditional dominant telecom provider under copper and cable to an NBN retailer. The business has to run a lot harder to a standstill and replace the lost earnings.
While it has received a large one-time payment and 25 years of government annuity, the payoff’s reinvestment is not without its risks.
Telstra Dividend History
Telstra Dividend Dates
Interim Dividend Date: March
Final Dividend Date: September