ASX Shares Telstra Shares (TLS)

Thanks @orangestreet. This is the exact thing which really confused me.

I thought Telstra owns NBN and they will benefit from the rollout.
If not, then I understand why they will be losing the 2-3 billions due to fixed line internet will eventually all transitioned to the faster NBN network.

 

https://www.commsec.com.au/content/...ary2017/Telstra-Limited-TLS-Feb17-Results.pdf

 

The dividend yield is too tempting...

 

Yeild trap?

 

http://imagesignal.commsec.com.au/d...bWFnZXNpZ25hbC9lcnJvcnBhZ2VzL3BkZmRlbGF5ZWQua

 

"
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I bought some Telstra shares on Friday, indeed for the yield and after reading some Different brokers comments. Bought some BKI as well just before the dividend. Plan was to stick with the old Lic's and (maybe WAM or WAX but price is at massive premium vs NTA). TLS yield was too good to resist though. There goes the plan.

 

Maybe those links only stay up for less the 24 hours,the one below covers all over the past month..imho..
Announcements Search Results

 

4.64 ex-dividend, lowest since 2013. are we not tempted?

 

4.64 ex div is approximately 4.8 cum div, which is about what it was yesterday. What's changed?

 

Not one bit.

 

You don't have to pay cgt on the dividend?

 

You pay Income tax.

CGT you get a 50% discount after a year and defer it infinitely without selling or incur at the time of your choice. Buying income cheaper should therefore be the priority IMO, curious if anyone else differs in opinion (and the reasons)

 

A dividend is not a capital gain. I just don't like the companies fundamentals. It could be great, average or the next Dick Smith
Who knows? Risky from my point of view so I will avoid. YMMV

 

...At a grossed up yield of almost 9.8% (@ $4.53) it's too tempting. I had to take just a little bite

 

I'd be a buyer if not holding at these levels and lower long term I reckon.

DB have hold.


TLS - 1H17 Result – dividend growth increasingly challenging

Telstra’s key financial metrics – EBIT, NPAT and FCF, came in below Craig Wong-Pan’s estimates. As a consequence we have downgraded EPS forecasts by a range of 1-5% across FY17-20. Furthermore we have reduced our dividend assumptions and now forecast flat dividends between FY17-25. Management reaffirmed FY17 guidance of mid-to-high single digit income growth, low-to-mid single digit EBITDA growth, FCF of $3.5bn-$4bn and capex/sales of ~18%. However management expects to achieve the lower end of the income guidance range due to lower than expected mobile hardware sales. We note the FY17 guidance excludes restructuring costs of $300-$500m. Relative to its full year guidance Telstra’s 1H17 income growth was tracking below guidance, EBITDA growth was in line with guidance, capex/sales was below guidance and FCF was tracking to guidance. TLS is facing high levels of competition across its Mobile, fixed line and data & IP markets, and appears to have adopted a strategy of defending share through ARPU compression. With revenue under pressure and the 1H17 dividend payout ratio above 100%, the company is reliant on cost savings and its capex program to deliver dividend growth. Hold. Price Target $4.84 (was $4.79).

 

Hi @Il Falco, if my memory serves me correctly, you wrote a post about your mate who works for Telstra and how he (and you) were moderately bullish about Telstra in the longer term and the wider telecommunications sector on the whole.

Assuming it was you, have you had any more conversations with him regarding this? Also, how do you see Telstra’s role post NBN in 2020?

 

I bought in @ $2.85 and offloaded about 18 months ago to buy property.
This is my first venture back into Telstra since but am happy to buy another 3 or 4 parcels on the way down (or up)

 

yeah I think its a sector you need to have in an income focussed industrials portfolio. TLS is never going to shoot the lights out, but should do 10% TSR or a bit better depending on buy price long run. (at current price 7% of that is FF div, which i think is sustainable). I've actually flicked him an email today re current situation. CAPEX is impacting earnings which should bear fruit in coming years. Lots of cost out opportunities too. Competition is often cyclical, asked for an opinion on this. Not advice!

 

Very short ;

The pasting is impending earnings shift from NBN coming to life and probably a vote of no confidence in the pumped up capex. Without having even looked at the research note, I think it's descent value. I'm bullish long term.