Here’s why the Telstra (ASX:TLS) share price just hit a new 52-week high

The telco has had a few greenshoots sprout this July.
The post Here’s why the Telstra (ASX:TLS) share price just hit a new 52-week high appeared first on The Motley Fool Australia. –

The Telstra Corporation Ltd (ASX: TLS) share price just hit a new annual high. By market close, shares in the telco giant were swapping hands for $3.77 – down 0.79%. However, shares did reach an intraday, and yearly high, of $3.83. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) slumped 0.76% today.

While there haven’t been any market announcements since 19 July, Telstra shares have been on the up.

Let’s take a closer look.

Another record-breaking day

While Telstra hasn’t made any announcements recently, investor sentiment is probably pushing its share price higher.

For example, for the first time in a long time, Telstra is talking growth. CEO Andy Penn said back in February he was aiming for earnings before interest, taxes, depreciation, and amortisation (EBITDA) to be higher in FY22 and greater again in FY23.

“To get the real benefits from all the effort we’ve already made, Telstra needs to be bold. I’ve set an aspiration for mid to high single-digit growth in underlying EBITDA in FY22 and $7.5 to $8.5 billion of underlying EBITDA in FY23. I am confident we can deliver this if we remain focused,” he said at the time.

Another possible reason the Telstra share price is reaching new heights? Dividends.

It’s expected to pay 16 cents per share for FY21 and again for FY22 – which calculates at a yield of 4.2%. Goldman Sachs expects the dividend, and the share price, to increase to 18 cents and $4.20, respectively.

In market news, the last announcement Telstra made was confirming it was looking to buy Oceania company Digicel Pacific in partnership with the Australian government.

A little further back, the largest appreciation of the Telstra share price in a single day in 2021 occurred on 30 June. That was the day Telstra announced the sale of a 49% interest in its mobile towers business. $1.4 billion of the net proceeds (50%) is expected to be returned to shareholders, either via a buyback or a special dividend.

Telstra share price snapshot

Over the past 12 months, the Telstra share price increased 11.9%. Year-to-date it is up an even greater 25.3%. Over the last 5 years, however, its value has plummeted 35%.

Telstra has a market capitalisation of approximately $45.2 billion.

The post Here’s why the Telstra (ASX:TLS) share price just hit a new 52-week high appeared first on The Motley Fool Australia.

Should you invest $1,000 in Telstra right now?

Before you consider Telstra, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Telstra wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

These ASX 200 shares were flying around the share market today

When will the Telstra (ASX:TLS) dividend increase again?
The Westpac (ASX: WBC) share price is down 20% in 5 years. But have the dividends paid off?
2 highly rated ASX 200 dividend shares that could be buys

These 3 ASX 200 shares were the most heavily traded today

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!