Shares of TLS have been on a protracted downtrend since mid-February when their shares traded as high as $5.22.
Earlier this week, TLS Chairman John Mullen met with institutional investors to assure them that the dividend is unlikely to be cut further.
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Telstra announced in September that its 2018 full-year dividend would be reduced by 30% to 22 cents a share…..which Mr Mullen said is effectively the floor.
At the current price of $3.45, a 22 cent dividend pencils out to a 6.3% yield.
It’s our base case that most of the bad news about TLS is priced in and accumulating shares in this price range is a reasonable investment.
Telstra
