Where to now for long term investors of Telstra, page-62

Example of looking just at yield, in isolation:

Dividend coming in 3 weeks = 15.5c
Dividend coming in March 2018 and September 2018 = 22.0c

Total dividend by Septeber 2018 = 37.5c, call it 37.0c.

Yesterday's closing share price =$3.87

Share price if hold to September 2018 =$3.50

But wait,

If add back the total dividens paid by next year September, $3.50 + 37c = $3.87

Means hold for a year and share price is $3.50 (under CEO Penn), but get compensated by dividends which bring you back to yesterday's closing price equivalent. That is, nothing gained, just tread water and 12 months opportunity loss.

This could well play out in the next 13 months. Share price goes to $3.50 but get back 37c in dividends yet your investment is still valued at yesterday's closing price of $3.87 after 13 months has passed.

Potential risk of owning TLS under CEO Penn.

But CEO Penn does not suffer this opportunity loss and does not have to worry about zero return on TLS share price in 13 months.