Highlights:
- Stock Performance: Telstra (ASX: TLS) shares have fallen nearly 4% year-to-date, closing at $3.81 per share on Monday after a 4% drop for the day.
- Dividend Yield: The company offers attractive dividend yields of 4.7% for FY 2024 and 4.9% for FY 2025, based on its current share price.
- Analyst Ratings: Analysts are largely bullish on Telstra, with a majority rating it a buy, and Goldman Sachs (NYSE:GS) has set a price target of $4.30, suggesting a potential 13% upside.
Telstra Group Ltd (ASX: TLS) has experienced a turbulent year in 2024. The stock has dropped nearly 4% year-to-date, and recently fell to 52-week lows of $3.42 per share in late May. On Monday, Telstra shares closed at $3.81 per share, down 4% for the day.
Dividend Appeal: Telstra, being Australia's largest telecommunications company, remains a strong choice for dividend investors. Goldman Sachs has highlighted the company’s dividend stability, forecasting fully franked dividends of 18 cents per share for FY 2024 and 19 cents for FY 2025. At the current share price of $3.81, this translates to dividend yields of 4.7% and 4.9%, respectively.
Strategic Moves: Telstra’s decision to raise mobile prices is seen as a positive step by Goldman Sachs, reflecting "mobile market rationality." The broker also points to significant potential in Telstra’s fixed assets, with estimates suggesting their value could range between $22 billion and $33 billion. Additionally, the recurring NBN payment stream could be valued between $14.5 billion and $17.9 billion.
Analyst Outlook: Analysts have a generally positive view of Telstra shares. Consensus estimates include thirteen buy ratings, two hold ratings, and one sell rating. Goldman Sachs has set a price target of $4.30, indicating a potential upside of around 13% from the current price.