The story had two comparisons but didn't address the future forecast in dividend reduction after 2020 when NBN Co one off payments stop and expected rise in term deposit rates in future years.
So more about where people looking for dividend income will invest in the short to medium term.
Closing price for Telstra of $3.60 and its forecast 2018 dividend of 22¢ a share you get a dividend yield of 6.11 per cent. Gross that up for dividend imputation credits and the yield is 8.7 per cent.
Comparison to term deposit: Franked dividend yield is now about three times the level of the highest six-month term deposit.
Comparison to bank stocks: That is better than any grossed up yield from the four major banks with the exception of National Australia Bank which has a gross up yield of 9.7 per cent.
TLS Price at posting:
$3.64 Sentiment: None Disclosure: Held
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