Email of the day (2)
Comment of the Day

October 18 2011

Commentary by David Fuller

Email of the day (2)

On Telstra's yield:
"I have been interested in your recent coverage of Telstra Corp, but have difficulty confirming your stated yield of over 13%. My information is that the annual dividend has remained at 28 cents for several years, which at the current SP of around 3.1 dollars, gives a yield of about 9%. Would you please clarify?"

David Fuller's view A search of the site indicated that Eoin last commented on Telstra (TLS AU) on 9th September 2011:

Telstra yields 13.16% and has spent the most time above its 200-day MA since 2007. A sustained move below A$2.90 would be required to question current scope for additional higher to lateral ranging.

Bloomberg currently shows the gross yield at 12.78% and net yield at 8.95%. The general interest point in this email is that as I recall, you could only get the higher rate as an Australian citizen and that foreign holders would be subjected to a Withholding Tax.

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