Has Telstra now become the default, go-to destination for yield seeking investors in the Australian share market

Has Telstra now become the default, go-to destination for yield seeking investors in the Australian share market? I think the answer is yes. The national incumbent in telephony is large, a well-known household name, carries a positive image amongst investors post the Future Fund exit-related crash to $2.62 in 2010 and, above all, it carries remarkably little direct exposure to the Grand Themes that keep investor minds ticking at night: what if Australian property prices do have a correction? What if the Australian dollar refuses to go down? What if China does experience a proper correction in its property markets? Bottom line: it'll be difficult to resist the shares given ongoing prospects for higher dividends and for more share buy backs (Telstra will be swimming in cash even on a low growth profile). My Weekly Insights this week: (VIEW LINK)


FNArena is a supplier of financial, business and economic news, analysis and data services.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.