Even with the 10% rally from the $3.34 low posted on November 28th, shares of Telstra dropped close to 30% in calendar year 2017.
We believe that investors were overly focused on past NBN issues and earnings estimates which seem to be pricing in worst case scenarios that assume TLS could be losing its dominate position in the telecommunications sector.
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With the best existing mobile network and largest customer base, it’s our view that TLS is best positioned to profit from the growth area of mobile data application outside the NBN.
At $3.65, the projected full year dividend of 31 cents pencils out to an 8.5% yield. We consider TLS a solid addition to portfolios at these levels.
Telstra
