Should you take Telstra's DRP

Intelligent Investor

Independent Financial Research

Should you take Telstra's DRP? Everyone loves a dividend, particularly, you'd think, shareholders in Telstra, which has benefited more than most from the 'rush to yield'. So it seems slightly ironic that demands from retail investors have encouraged Telstra to reinstate its dividend reinvestment plan... So should you take Telstra's DRP when it's available? The answer is a resounding 'No'. DRPs are lazy investing. Participating in them presumes that that stock is the best home for your cash every time it pays a dividend - because you think it's the most undervalued opportunity on the market at that time and/or that it offers the best diversification benefits. For even the most ardent supporters of Telstra, this is fantastically unlikely to be true for every dividend payment. Read the full article: (VIEW LINK)


Intelligent Investor
Independent Financial Research

Intelligent Investor is an independent financial research service with a 14-year history of beating the market. Our value investing approach empowers Australians to make more informed decisions to build their long-term wealth. We off structural...

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