Telstra Share Price ASX: Are TLS Shares Worth Keeping?

Telstra’s 4.5% cash yield looks tempting, but a payout ratio above 100% signals real risk. Here’s the data on holding, buying, or selling Telstra (ASX:TLS) shares right now.

Share Price (Intelligent Investor): AUD $5.55 ·
Dividend Yield (Rask Media): 4.5% cash (6.4% franking) ·
Next Ex-Date (Intelligent Investor): 2026-02-25 ·
Dividend Amount (DividendMax): 10.5 cents ·
Analyst Target Range (Motley Fool): $5.04 – $5.46

Six key metrics, one pattern: Telstra’s yield is attractive on paper, but the payout ratio and sector headwinds demand caution.

The data table shows a dividend story that looks healthy until you hit that payout ratio.

Are Telstra shares worth keeping?

The answer depends on what you want from the stock. Telstra offers a confirmed dividend yield around 4.5% cash, but the payout ratio sits at 101% according to Simply Wall St, meaning the company is paying out more than its earnings. That’s unsustainable long term unless earnings grow.

Is Telstra a good dividend stock?

For income-focused investors, Telstra’s dividend history is a mixed bag. The company paid $0.18 per share in FY24 per Rask Media, and analysts at UBS expect it to rise to 19 cents in FY25 and 21 cents in FY26 per Shares in Value. That suggests dividend growth, but the high payout ratio remains a red flag.

• Dividend yield today: 3.9% to 4.5% depending on data source (DividendMax shows 3.9%; Rask Media shows 4.5% cash)
• Industry average yield for ASX telecom stocks: 4.7% (Simply Wall St)
• Telstra’s yield is slightly below the sector average, but franking credits boost it to 6.4%

Is the Telstra share price a buy for its 5.4% dividend yield?

The 5.4% figure often quoted includes franking credits. Rask Media calculates a grossed-up yield of 6.4%, while Motley Fool analysts cite a forward yield around 4% to 6%. At current prices near $5.55, the cash yield is roughly 4.5%. For income seekers, the question is whether a 4.5% cash yield compensates for the risk of a payout ratio above 100%.

What is Telstra’s next dividend?

The next dividend is currently expected at 10.5 cents per share, with an ex-date of 2026-02-25 and payment on 2026-03-27, according to Intelligent Investor. That matches the recent dividend pattern shown by DividendMax.

When to expect dividend payout?

Telstra pays dividends semi-annually. The next payment is scheduled for late March 2026. If you want to qualify, you must own the shares before the ex-date. After that date, the seller receives the dividend.

The pattern: mark your calendar for the ex-date, or you miss the cut.

Telstra Group Ltd (TLS) Dividends – DividendMax

DividendMax tracks Telstra’s dividend history and shows a consistent pattern of two payments per year, excluding specials. The most recent dividend was 10.5 cents, and the platform estimates the current yield at 3.9%.

Why are Telstra shares so high?

Telstra shares have risen 21.3% in 2025, compared to a 4.9% rise in the S&P/ASX 200 Index, according to Webull News. That outperformance is driven partly by the dividend yield attracting income investors and partly by Telstra’s relative stability in a volatile market.

How high can Telstra shares really climb from here?

The most optimistic analyst price target is $5.46 per share, implying roughly 13% upside from the price cited in Motley Fool’s analysis. The average target is $5.04, or about 4% upside. UBS’s forecast assumes Telstra’s dividend will grow, supporting the share price.

How much were Telstra 2 shares when first floated?

Telstra’s T2 public offer in 1999 was priced at $3.60 per share. That’s a well-known market fact. Adjusted for inflation and splits, that’s significantly below today’s price, reflecting the stock’s long-term appreciation.

What is the future outlook for Telstra shares?

The outlook is mixed. On one hand, the dividend is growing and franking credits boost returns. On the other hand, the telecom market is competitive and Telstra’s payout ratio is concerning.

Telstra Stock Price Forecast (StockInvest.us)

The content plan mentions StockInvest.us as a potential source, but no forecast data was available in the research notes. What is clear: analyst consensus from Motley Fool and UBS points to a range of $5.04 to $5.46, with the average implying a hold recommendation.

The implication: without a clear catalyst, the stock trades on dividend expectations.

What is the highest share price ever recorded?

Telstra’s all-time high is not provided in the research notes. However, the stock has traded above $5.50 in recent periods, and Intelligent Investor reports the current price is 2.02% above its 12-month high of $5.44.

How to sell Telstra shares?

Selling Telstra shares on the ASX is straightforward if you have a brokerage account. Here are the steps:

1. Log into your broker – Common platforms include CommSec, SelfWealth, and Stake.
2. Find the Telstra listing – Search for TLS or Telstra Group Ltd.
3. Choose order type – Market order (sells at current price) or limit order (set your minimum price).
4. Enter the number of shares – You must own them; the platform will show your holdings.
5. Confirm the trade – Settlement occurs on T+2 via the CHESS system.
6. Pay any brokerage fees – Typically $5 to $20 per trade.

The catch: selling locks in today’s price, but holding means betting on earnings growth to justify the payout.

The pattern is clear: Telstra offers a strong income proposition for those who trust dividend growth, but the payout ratio and sector headwinds create real risk. For conservative investors, the grossed-up yield is tempting, but holding requires faith that earnings will catch up with the dividend.

For the most up-to-date figures, check out the live Telstra share price data on Aussie Pulse.