What do I do with Telstra?

I have $20,000 Telstra in my SMSF. I paid $3.18 and I need dividends.

Do I:

  1. sell part;
  2. sell all; or
  3. keep all?

As I watch the price coming down I question what I should do.

A: I am not sure what you mean by the “price coming down”. Sure, it has come down from its high of $5.23 – however at around $5.00, it is still up 25% on its price at the start of the year.


Telstra will pay a 28c fully franked dividend next year (could be as high as 29c or 30c). Assuming this is only 28c, this is a yield of 5.6%, which grosses up to 8.0% if you are in pension – or 6.8% if you are in accumulation.


If you need the income, keep all.


Regards



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