Where to now for long term investors of Telstra, page-61

At today's price, yield is actually 9.75% over 13-months - minimum! This does not include franking!!! Clearly a BUY at these levels for the income players.

@tomg_76 ,

I think that's a somewhat dangerous what of looking at the situation.

Because, just before the stock went ex-dividend last year, the share price was around $5.25-$5.30. Over the subsequent 13 months, 46.5cps of dividends was paid, i.e. a prospective yield of an-also seemingly attractive 9% yield.

Sure, holders got their 9% in dividends (fully franked), but they lost 25% of the value of their capital.

Which just goes to show that looking just at yield, in isolation, is not good enough. One needs to have a fundamental understanding of the determinants of the dividends that make up that yield, and the risks around those determinants.