2018 Annual Report, page-5

Hi there, there are 2 possible outcomes for the Telstra announcement,
First is the dividend stays at 22 cents, Telstra has plenty of cash flow to fund it in 2019 and probably 2020, by then cost cutting an the start of 5G should kick in big time and support a 22 cent dividend from then on. The analysists will scream that the dividend should of been cut to reinvest in the business but the question is where? Shareholders in WOW lost 80 cents per share with Masters debacle and Telstra shareholders 4.5 cents per share with Telstra failed investment of 500 million in the US that was written off earlier this year. Simply throwing money at a businesses expecting it to grow does not work, BHP shareholders found this out the hard way with BHP investment in shale in the US. Companies only need just enough money to run a lean organization, any surpluses belongs to the shareholders and should be given to them, it is much safer in their hands than CEOs who get sweaty hands thinking on how to spend or better put waste shareholders funds.
The other situation is that the dividend is cut to 18 cents, that would make the analysist happy, they then can then say they were correct in their predictions that the Telstra dividend had to be cut. Telstra would probably be re-rated as a buy by them. Telstra would have plenty if money to roll out 5G the only problem is how much would end up beening wasted. Either way I think the worst of pessimism about Telstra is over and the share price will soon be over $3.00 even after it goes ex-dividend.
I hope Penn gives a much better performance than in the past, he should say it as it is, he keeps on saying that TPG is strong competition, he should say that TPG is a lame duck with their floundering mobile roll out that the public will not use no matter how cheap it is. Every second word should be about cutting costs and how good 5G will be and the spin off of the infrastructure part of Telstra will be a massive bonus to shareholder value. I personally hope though he gets stuck in the traffic on Thursday and Telstra gets some one like Kermit the Frog to give the presentation as I think Kermit would do a better job.

Good Luck