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.
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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.