Telstra will announce its earnings report this Thursday, August 17th.
The Telco giant is expected to maintain its 15.5 cents per share dividend, which will take its FY 2017 total dividend to 31 cents per share.
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At the current share price of $4.15, this pencils out to a dividend yield of 7.4%, which is respectable in the current market environment.
Some analysts expect TLS to cut their dividend guidance into 2018 as the government cuts the NBN related payments, and may rule unfavorably on the unsettled bandwidth sharing plan.
However, considering the share price has dropped over $1.00 since the beginning of the year, and the recent price action has shown good support at $4.00, we consider the risk asymmetrical to the topside over the medium term.
As such, we view TLS as a good dividend play with a medium-term target of $4.80.
Telstra
