I’ve held Telstra for a number of years and enjoyed their dividends. As an income investor holding them in an SMSF in pension mode, should I continue to hold?
A: Thanks for the question.
The brokers have become a little more negative about Telstra, citing earnings challenges post the NBN, an underwhelming full year financial result in August, more competition in mobiles, and network problems. According to FN Arena, the broker consensus target price is now down to $5.21.
I think there is good support around $5.00, and when the buyback is completed, this will provide some further support.
For an income investor in pension mode, I think that they are worth holding – I wouldn’t be in any rush to sell.
