ASX Shares Telstra Shares (TLS)

That's the $3.60 question. If anyone has the (correct) answer please let me know.

One point, the dividend yield will be cut 30%, so it won't be 8.6% next dividend, unless the share price falls even further.

 

Why will the dividend be cut? From what I have read on the forum even shares fall in price dividends generally stay the same????? Not so??

 

They take your money and give back slowly as dividend

 

Shhhhhhh we call that "stable income" around here

 

but they are dropping the dividend by 30%?

Why a share darling when highest point price was $6.17 and now $3.60??? OMG imagine if this was a house, would you be happy for 40% drop in your capital to receive a dividend of 6%-8% yield????

I must be missing something??

 

The high range for TLS was just under 159.87% in the first second month of 1999 and TLS did for very small window go above $9.15 ,the low 27.98 % was around late 2010 in the $2.60 range what happens next is anyone guess...imho..

 

Other way around.... dividend cut (or perceived cut due to profit falls) causes the share price fall.

Still a respectable and sustainable dividend at 70% payout ratio, 100% was too high. I bought some more.

 

Double down. If you already have a position this reduces your average cost. I don't have my crystal ball but I think the dividend going forward is reasonably sustainable.

 

Actually it slightly increased my average cost, I bought about 10K worth for around $2.60 seven years ago.

 

Because paying out 100% of profits is not sustainable, as they have discovered ,they have no funds to invest in growth and they cant use NBN payments to secure loans. Greedy share holders poor management and expected higher interest rates are the reasons fot TLS decline. Might be worth buying if they get to $3.00 dollars and 7% yield.

 

ok, now it makes sense.... bad management destroys companies, and erodes profits for shareholders.

 

The recent huge hits to the Telstra share price have pushed the stock to a five-year low.

The fact that the monetisation deal is not going ahead wiped about $1 billion off the market value of Telstra. That does not include the loss of market cap associated with the stock going ex-dividend on Wednesday.

When you combine Wednesday's closing price for Telstra of $3.60 and its forecast 2018 dividend of 22¢ a share you get a dividend yield of 6.11 per cent. Gross that up for dividend imputation credits and the yield is 8.7 per cent.

Read more: Telstra shareholders wear more pain but get higher yield

 

Telstra: What the market missed – Vertium Asset Management

 

Missed??.....

Posted 21 April 2017 - Warning about TLS

As expected dividend was cut, the Telecommunications sector is weak and lagging XJO. Continually rotating in weakness at the moment. Only hope is if equities markets tank it may get a look in again with bigger players as a defensive yield play but even then I wouldn't touch it.

Telecommunications Sector Rotation


No advice

 

Down down down down they go ......$3.27... down

 

Some are saying it may well go well below 3 dollars ,TLS goes through the same pattern every time ..

 

Is that a buy signal for TLS?

 

Hard to say,but if it goes below the 3 dollar mark then i may buy more just on the div's alone..imho..

 

is that going to be attractive keeping in mind they are reducing their dividends and their may be further cuts as they look to expand the business?

 

TLS is now ex-div plus a semi bear market so the shape-shifter does not change much price wise until the 10 week lead up to the next div payment that's when the momentum starts again--but i could be wrong..imho..

http://imagesignal.commsec.com.au/d...nZXNpZ25hbC9lcnJvcnBhZ2VzL3BkZmRlbGF5ZWQuanNw