Shares of Telstra have dropped close to 15% over the last month. When the shares traded at $4.00 on Tuesday, this was the lowest price since October 2012.
While some of the pricing fundamentals may be unclear going forward, from a pure yield perspective, we see the potential for value.
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At current prices, if TLS matches it’s previous dividend of 15.5 cents in September, this puts the stock on a forward yield of over 8%; plus franking credits.
We consider this good value and like the long side of TLS for a move back over $4.50 in the medium-term.
Telstra
