Telstra’s 1H24 result was a slight miss, while FY24 guidance was updated towards the lower end of prior guidance. Hence, the stock has drifted lower over recent weeks. Also, TLS is regarded as a defensive stock, and as markets post fresh all-time highs, we are currently in a more “risk-on” environment which doesn’t help the telcos’ relative performance. However, the dividend was lifted to 9c, putting the stock on a yield close to 5%. Compounding the average result was unconvincing comments around costs – “we still expect to achieve the large majority of our cost-out ambition by the end of FY25”. With Optus set to lift its game, we aren’t considering increasing our TLS exposure at this stage.
- We can see TLS testing its 2022 swing low in the coming months and aren’t considering it for our Active Growth Portfolio – MM is long TLS in our Active Income Portfolio.
MM continues to like TLS as an Income stock through 2024
Add To Hit List
