Among the famous Australian stocks, Telstra Corporation Limited (AU:TLS) offers investors an opportunity to maintain balanced growth with a Moderate Buy rating, decent upside potential, and a dividend yield of nearly 5%. TLS stock is a popular income-generating stock on the ASX, with its dividend yield exceeding the sector average of 2.54%.
Telstra Group is a leading communication and technology services company in Australia.
While choosing a stock that offers balanced growth, TipRanks’ tools come in handy for users. For example, the TipRanks Stock Comparison tool provides a list of stocks within a particular market that can be compared across various parameters to make informed decisions.
TLS Dividend History
Along with its first-half results for FY24, Telstra announced a fully franked interim dividend of AU$0.09 per share, representing a 5.9% rise from the preceding year.
The total dividends paid in FY23 amounted to AU$0.17 per share, which was 3% above the AU$0.165 paid in FY22.
Looking ahead, the company intends to prioritize maximizing its fully franked dividends over time as part of its capital management strategy.
Favourable Outlook and Recent Ratings
Earlier this week, Telstra announced certain organizational changes and cost-cutting measures aimed at streamlining its business operations. With these changes, the company is aiming for a simple product structure, better customer service, and an effective cost structure. As part of this overhaul, the company has also estimated job cuts of more than 2,000 employees.
Along with this, Telstra also reaffirmed its full-year guidance for FY24, expressing confidence in robust subscriber growth in its mobile business and strong demand for its products.
Following this announcement, five analysts reaffirmed their ratings on TLS stock, with three recommending Buy. Analysts from Ord Minnett, Morgan Stanley, and UBS are optimistic about the stock’s prospects and have reiterated their bullish stance. Among these, Ord Minnett predicts the highest upside of 30% in the shares.
Meanwhile, Macquarie downgraded its rating on the stock from Buy to Hold and CLSA maintained its Sell rating.
Is Telstra a Good Share to Buy?
According to TipRanks’ rating consensus, TLS stock has received a Moderate Buy rating based on eight recommendations, including six Buys. The Telstra share price target is AU$4.23, which is 22.25% above the current price level. Year-to-date, the stock has incurred a 13.1% loss in trading.
