Charlie Aitken - I am upgrading Telstra (TLS) back to buy
Charlie Aitken - I am upgrading Telstra (TLS) back to buy. One of the key attractions of TLS: they are now corporately predictable and consistently on message. I think the Australian economy simply can't open for business each day without TLS's reliable networks. I am forecasting TLS generates 34c EPS in FY15 and pays an annual dividend of 31c. That is a 1c rise in my previous FY15 TLS dividend forecast. I suspect given flat domestic cash rates, volatile equity markets and volatile bond markets that TLS prospective dividend yield will settle in the 6.00%ff to 5.50%ff band over the year ahead. With the stock at the bottom end of that prospective yield trading range (5.86%/8.37% grossed up @$5.29) I am upgrading it to buy today, expecting a 12 month total return of +10% to 14% including the value of franking credits.
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