How does the Telstra dividend compare to its peers?
The post How does the Telstra (ASX:TLS) dividend compare to its sector? appeared first on The Motley Fool Australia. –
Last week the Telstra Corporation Ltd (ASX: TLS) share price pushed to a 52-week high after the release of its full year results. Investors were pleased with the telco giant’s robust earnings and cash flow, positive guidance, and its dividend.
In respect to the latter, I thought I would look to see how the Telstra dividend compares to its peers.
How does the Telstra dividend compare to its sector?
The good news for shareholders is that the Telstra dividend offers the most attractive yield in the sector based on current forecasts.
In case you missed it, last week Telstra declared a fully franked final dividend of 8 cents per share with its results. This brought its full year dividend to a fully franked 16 cents per share, which was flat year on year.
Based on the current Telstra share price of $3.94, this equates to a fully franked 4% dividend yield.
What about its peers?
As a comparison, Telstra’s largest listed rival TPG Telecom Ltd (ASX: TPG) is forecast by Morgan Stanley to pay its shareholders a 7.5 cents per share dividend in FY 2021. Based on the current TPG share price of $6.49, this represents a yield of just under 1.2%.
Elsewhere, Morgan Stanley is expecting VoiP provider MNF Group Ltd (ASX: MNF) to reward its shareholders with an 8.5 cents per share dividend this year. This equates to a 1.5% dividend yield based on the current MNF share price.
Superloop Ltd (ASX: SLC) isn’t expected to be in a position to pay a dividend yet and has been forecast by Morgans to post another loss in FY 2021.
Finally, Uniti Group Ltd (ASX: UWL) is still in its growth phase. Analysts at Macquarie expect the company to be profitable again, but don’t believe a maiden dividend will be declared for some time.
All in all, this makes the Telstra dividend the clear winner in the sector right now.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended MNF Group Limited and SUPERLOOP FPO. The Motley Fool Australia owns shares of and has recommended MNF Group Limited and Telstra Corporation Limited. The Motley Fool Australia has recommended Uniti Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.