Telstra under payout stress
TELSTRA shares are under fresh pressure following chairman John Mullen’s comments that the telco’s future as a dividendpaying business could be on the wrong side of history.
In an age of new- tech giants such as Amazon, Mr Mullen acknowledged Telstra would be in a different position today if it had diverted dividend funds away from shareholders and into an Amazon- killing war chest.
“If Telstra hadn’t paid a dividend for 10 years we’d have a $ 50 billion war chest to take on these new competitors,” Mr Mullen told Sky News Business.
Mr Mullen’s comments come after Citi analyst David Kaynes suggested last week that, on its current trajectory, Telstra’s earnings per share will be flatlining at 17c within two years.