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TLS - TELSTRA CORPORATION LIMITED.


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TelstraÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s earnings downgrade casts doubts on its future dividends

The direction of Telstra's dividend is a tender point right now given the telco is the largest held retail stock in the market, and its major earnings downgrade does not bode well for the future, according to some analysts. The telco last week revised its full year revenue guidance from a range of $28.3bn to $30.2bn to a range of $27.6bn to $29.5bn, a reduction of $700m,

 

More importantly, especially when the dividend is calculated, EBITDA (earnings before interest, tax, depreciation and amortisation) guidance for the period has been cut from a range of $10.7bn to $11.2bn to $10.1bn to $10.6bn, down $600m.

 

The cuts to the forecasts came after NBN Co said it would delay the NBN rollout of the HFC (hybrid fibre coaxial) cable service by six to nine months. Under the original NBN Co plan, high-speed broadband would be available through the HFC cables, which also deliver pay-television.

 

Telstra moved to try and calm investors nerves by reaffirming its 22c dividend for this year, but analysts question just how long that promise can be maintained. Shaw and Partners is especially doubtful about the dividend forecast and predicts the annual payout could fall to as low as 18c.

 

Telstra's dividend has been in the spotlight for the past few months after its chairman John Mullen warned the payout ratio in the next few years could come under pressure to help offset the telco's slower revenue growth.

 

Shaw has downgraded its Telstra earnings forecasts by 10.2 per cent in fiscal 2018 and by 3.6 per cent the following year. It has also forecast a strong 25.5 per cent rebound in 2020 once the NBN rollout gets back on track. Despite the better forecast, it still has a sell call on Telstra.

 

Deutsche Bank has adjusted its dividend forecasts and now predicts the dividend will stay at 22c for the next five years.

 

However, Macquarie sees a brighter short-term future for Telstra and has upgraded the stock to outperform, which helped the company gain 2.3 per cent yesterday to close at $3.50. Macquarie said it believed Telstra's dividend at 22c was underpinned by the NBN payments over the medium term and would be maintained

http://www.theaustralian.com.au/business/d...2d3237baf6e492c
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Deutsche Bank has adjusted its dividend forecasts and now predicts the dividend will stay at 22c for the next five years.

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5 years is little too long for buz these days. but i reckon there will be over 90% of chance that TLS will pay 22cps ff divy for next two years from now on

that sets for a good defensive yield stock. i know it is a dog....but it has value at it's current price imho.

 

 

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  • 3 weeks later...

I take today's slump as a result of some options play.

(in case you hadn't noticed: it's the last Option Expiry of the year)

The pullback hit Fib support as per the chart below, and if it holds, I expect the rebound to run up to $3.96 or higher.

 

post-20537-1513818696_thumb.png

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  • 3 weeks later...

http://www.afr.com/brand/chanticleer/telst...20180111-h0gzl0

Telstra CEO Andy Penn's insights from Las Vegas tech show

 

"....These artificial intelligence-based assistants are really starting to achieve a degree of critical mass in their technology to be really quite effective and really impactful," he says.

 

"What I mean by that is it has gone beyond questions like: 'Google, can you tell me the highest mountain?', to being really functionally valuable and rich in their capability.....

 

"I can't think of a single thing I saw today that is not intended to be connected by a network," Penn says.

 

"The most important part for us is that everything relies on connectivity and therefore having the best network, the largest network, the fastest network, the smartest network in Australia is crucially important.

 

"The vision about us becoming a technology company that empowers people to connect is not about us moving away from being a telco, it's actually recognising what a telco looks like in the future....

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Been more than a while since I last posted but back on deck - new job over the past five years meant it was near impossible to follow the markets so thought it best to take a break. Anyway, with retirement looming and trying to spread the financial love have been buying in on some blue chips of late and also eyeing TLS. Some recent commentary have forecast that they may drop as low as $3.00. The question I have, and all opinions welcomed, is recent pricing a suitable price point to buy in at....
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Every now and then I get a brain snap and buy a few of these dogs when I think they are a good buy but always get jolted back to reality and sell for a loss ,though it does reinforce the mantra of buy something that is going up and pays good divs as well,like ppt the banks,bhp,wam and many others that do not disappoint like tls,cheers mrbear :thumbdown:
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..when Ex-dividend ..... fair comment, and a likely scenario. There quite a few "dividend harvesters", outfits like Plato and several smart beta close inverted commas ETFs, that take the fully franked high yield proposition to SMSFs and the like. Some LIC's also behave in a similar fashion - DJW, WAM, those with enhanced dividend policies.

 

Never seen the point, myself, but a market niche is a market niche, I guess.

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