TLS recently delivered a good update with pretty much everything in-line with expectations including the 8cps dividend for the half, with the companies free cash flow (FCF) expectations increased from $2.8bn-$3.3bn to $3.3bn-$3.7bn which all but ensures the dividend of 16cps pa is very sustainable with some potential upside in that number, something that is not being factored in by the market – 4.5% fully franked is extremely compelling in today’s market.
We see little downside in the stock and a very plausible path for TLS to trade back up towards $4.00.
MM is bullish Telstra (TLS) for income & some price appreciation
Add To Hit List
