Telstra bullish on its dividend outlook

TELSTRA chief financial officer Vicki Brady says she is confident of maintaining Telstra’s fully franked dividend of 16c a share and growing it over time, as the telco giant embarks on its recently unveiled T25 growth strategy.

Speaking at a retail shareholder event online, Ms Brady said she is acutely aware of ongoing shareholder interest in the dividend and is confident it will grow as T25 ramps up.

“We’re very confident in maintaining the minimum 16c fully franked dividend and I know that’s been an important question over the last little while, so have confidence in that,” she said. “We will seek to grow the fully franked dividend over time.”

Chief executive Andy Penn reiterated Telstra’s plans under its T25 strategy, which include mid-single digit earnings before interest, tax, depreciation and amortisation (EBITDA) growth between the 2021 financial year and 2025 financial year. The telco is also axing $500m in fixed costs from financial year 2023 through to financial year 2025.

Telstra shares fell 3c to $3.90 on Wednesday.