Telstra Declares Fully Franked 9.5 Cents Dividend with DRP Option for FY25 H1

Telstra's Dividend Announcement

Telstra Group Limited, Australia's leading telecommunications provider, has declared an ordinary interim dividend of 9.5 cents per share for the six-month period ending 30 June 2025. This dividend is fully franked, reflecting the company's ongoing commitment to returning value to shareholders while maintaining a strong tax position.

The dividend will go ex-dividend on 27 August 2025, with the record date set for 28 August 2025. Shareholders registered by this date will be eligible to receive the payment, which is scheduled for 25 September 2025. The fully franked nature of the dividend means investors will receive a credit for the 30% corporate tax already paid by Telstra, enhancing the effective yield for Australian shareholders.

Dividend Reinvestment Plan Details

Alongside the cash dividend, Telstra continues to offer its Dividend Reinvestment Plan (DRP), allowing shareholders to reinvest their dividends into additional shares rather than receiving cash. Notably, the DRP for this dividend carries no discount, and no new shares will be issued under the plan; instead, shares will be acquired on-market. The election deadline for participation in the DRP is 29 August 2025 at 5 – 00 pm.

This approach aligns with Telstra's conservative capital management strategy, providing shareholders flexibility while avoiding dilution. The DRP price will be calculated as the average daily volume weighted average price of shares traded from 1 to 5 September 2025, ensuring a fair market-based price for reinvested dividends.

Implications and Market Context

Telstra's steady dividend reflects its stable earnings and cash flow generation in a competitive telecommunications landscape. The fully franked dividend is likely to appeal to income-focused investors, particularly those seeking reliable returns amid broader market uncertainties. The absence of a DRP discount may temper participation rates, but it underscores Telstra's disciplined capital allocation.

Investors will be watching closely how the market responds around the ex-dividend date and whether the DRP attracts significant uptake. This dividend announcement sets the tone for Telstra's financial outlook in the second half of fiscal 2025 and beyond, signaling confidence in its operational performance and cash generation capabilities.