?? Telstra ??

Telstra has generally been a terrible equity investment over the past 20 years and yet an article such as this still tries to laude the stock as being an attractive “yield play”.

https://lnkd.in/g8BHr3X

It doesn’t matter if you receive a 5% dividend and the stock loses 50% of its capital.

Australian retail equity investors still pine for dividends at any cost AND the cost happens to result in losing capital.

More on the concept of “total return” in an upcoming post.

Following today’s earnings result, Telstra’s stock plummeted 8.2%.

This is 2 years worth of dividends, gone, in a single day of trading.

As a respected peer once told me, “Telstra is a stock that will keep paying a dividend, until it can’t anymore”.

August 13, 2020
by Rob Zdravevski
rob@karriasset.com.au

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