Comments on: Telstra Looks Like a Strong Buy http://www.fusioninvesting.com/2009/03/telstra-looks-like-a-strong-buy/ Fusing Fundamental and Technical Analysis with lashings of Behavioural Finance. Investing in Australia and North America. Thu, 02 Feb 2012 06:57:27 +0000 hourly 1 http://wordpress.org/?v=3.2 By: Dean Morel http://www.fusioninvesting.com/2009/03/telstra-looks-like-a-strong-buy/comment-page-1/#comment-2329 Dean Morel Mon, 06 Dec 2010 21:26:52 +0000 http://www.fusioninvesting.com/?p=1061#comment-2329 Mike, Telstra's earnings and <a href="http://www.fusioninvesting.com/wp-content/uploads/2010/06/tls-per-share-data.png" rel="nofollow">gross cash flow have been higher than dividends</a> in all but two years. While taxable income in future years may not be enough to fully frank a 28c dividend, the board has said the dividend will be maintained for two years. I continue to see Telstra as part of a good portfolio base providing an excellent income yield and less risk than most other S&P/ASX 20 companies. Mike, Telstra’s earnings and gross cash flow have been higher than dividends in all but two years. While taxable income in future years may not be enough to fully frank a 28c dividend, the board has said the dividend will be maintained for two years. I continue to see Telstra as part of a good portfolio base providing an excellent income yield and less risk than most other S&P/ASX 20 companies.

]]> By: Mike http://www.fusioninvesting.com/2009/03/telstra-looks-like-a-strong-buy/comment-page-1/#comment-2324 Mike Mon, 06 Dec 2010 10:50:23 +0000 http://www.fusioninvesting.com/?p=1061#comment-2324 Hmmm.....Telstra - what a shocking stock this is. Trading at $2.80, intrinsic value around $2 - $2.20. What most investors see is the massive dividend yield, but fail to see that Telstra doesn't make enough cash flow/profits to keep making those dividends and at some stage, Telstra is going to have to cut the dividends back. I'd be happy to make a prediction that Telstra's share price won't be much higher in 10 years time than it is today, with substantially lower dividends. Cheers mike Hmmm…..Telstra – what a shocking stock this is. Trading at $2.80, intrinsic value around $2 – $2.20. What most investors see is the massive dividend yield, but fail to see that Telstra doesn’t make enough cash flow/profits to keep making those dividends and at some stage, Telstra is going to have to cut the dividends back.
I’d be happy to make a prediction that Telstra’s share price won’t be much higher in 10 years time than it is today, with substantially lower dividends.

Cheers
mike

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