How to buy Telstra shares
Learn about Telstra’s share price and dividend payments and follow these steps to buy Telstra shares.
Telstra is a household name and one of the most popular blue chip stocks held by Australian investors. You can follow the four steps below to buy Telstra shares right now.
Further in this guide, you’ll learn about Telstra’s historical share prices, its dividend payments and what to consider before deciding to buy Telstra shares.
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Here’s how to buy Telstra shares in four steps
If you’re new to share trading, follow these steps to buy Telstra shares. If you already have a share trading account, you can go straight to step three.
1. Compare share trading accounts.
Compare share trading accounts in the table below, looking for one with low brokerage fees and access to the markets you want (e.g. the ASX plus any international markets).
2. Open an account.
Once you’ve chosen a share trading platform, click the “Go to site” button to be taken to its website where you can complete the online application process to open a new account. You’ll need to provide your contact details, tax file number and proof of identity (usually your driver’s licence, Medicare details and passport will be sufficient).
3. Fund your cash account.
You’ll receive a linked cash account when you open your share trading account (the cash account is just a type of bank account). Transfer enough money into the cash account to buy your shares, remembering to include any brokerage costs.
For example, if you wanted to buy $2,000 worth of Telstra shares and you know there’s a brokerage fee of $15, make sure to transfer at least $2,015 into your cash account. Trades on the ASX must be at least $500 in value, but you can invest with a range of robo advice apps for as little as $5.
4. Place your order.
Create a new order to buy Telstra shares. You can do this within your online portal when you log in to your new share trading account. You’ll need to fill out the ASX code (for Telstra, it’s TLS), select the price you’d like to buy the shares for (or select "Buy at market" if you’re not fussed) and how many shares you’d like to buy.
Once you’ve confirmed your order, your Telstra shares will be bought when your target price is hit. You’ll get a notification from the broker when you’ve successfully purchased the shares. If you’ve selected to buy at market, this will happen right away.
Telstra provides home phones, mobile devices and broadband Internet plus digital media services including pay TV. Telstra is one of the biggest telecommunications companies in the world, and chances are you yourself are a Telstra customer or, at the very least, know people who are.
- Full name: Telstra Corporation Limited
- ASX ticker code: ASX:TLS
- Industry: Telecommunications
- ASX listing date: 1997
- Market cap: $34.3 billion (2018)
- CEO: Andrew Penn (2018)
- Key competitors: Optus, Vodafone, TPG
Telstra historical share prices
We’ve listed Telstra share prices between 2016 and 2018 across six-month intervals in the table below. Take a look at the price difference between these three years; you can see the share price has gradually declined.
|Date||ASX:TLS price (AUD high)||ASX:TLS price (AUD low)|
|31 July 2018||$2.85||$2.81|
|31 Jan 2018||$3.69||$3.68|
|31 July 2017||$4.15||$4.10|
|31 Jan 2017||$5.06||$5.00|
|29 July 2016||$5.77||$5.71|
|29 Jan 2016||$5.63||$5.57|
So what does this mean? Well, there are a number of reasons that Telstra’s share price has been gradually declining. One possible factor is the increased competition in the telecommunications sector, particularly with the introduction of the National Broadband Network (NBN).
As an investor, it’s your job to do some research and determine why the share price has been dropping and to determine if you see value in the company going forward.
Telstra dividend information
One of the best things about investing in shares is getting paid dividends, which are small percentages of the company’s profits. And what’s great about Australian companies in particular is the fact that these dividends are usually fully franked, meaning the company has already paid tax on those earnings so shareholders won’t need to pay tax on those earnings again. Not all companies pay dividends, and some pay much larger dividends than others.
Telstra has a reputation for its commitment to paying large, fully franked dividends. The consistent dividends are what attract a lot of investors to buy shares in the company. We’ve listed the Telstra dividend payment information between 2015 and 2018 in the table below to help give you an idea of Telstra's dividend. The interim dividend is announced before the company releases its full-year earnings, and the final dividend is announced after. Of course, it’s important to remember that this is historical dividend information and not an indicator of future dividends.
|Payment date||Dividend per share (AUD)||Franking||Dividend type|
|29 Mar 2018||$0.110||100%||Interim|
|28 Sept 2017||$0.155||100%||Final|
|31 Mar 2017||$0.155||100%||Interim|
|23 Sept 2016||$0.155||100%||Final|
|1 Apr 2016||$0.155||100%||Interim|
|25 Sept 2015||$0.155||100%||Final|
|27 Mar 2015||$0.150||100%||Interim|
Should you buy Telstra shares?
Here’s what to consider before deciding to buy Telstra shares.
- Telstra’s share price. It’s important you consider the current share price and determine whether you think it’s fairly valued. After doing some research, you might decide the share price is low and decide to buy, or you might think it’s over-valued and decide to wait for it to drop.
- Telstra’s dividend. If the attractive dividend is the main reason you’re buying Telstra shares, make sure you do your research and look for any information on whether the company plans to keep this dividend in place.
- Telstra’s competitors. Do you think Telstra’s competitors like Optus and the NBN pose a threat to the company? Read the annual reports of some key competitors (these are readily available on their websites) to see how they compare to Telstra, and what their growth plans include.
- Telstra’s growth potential. Is there much opportunity for Telstra to grow its business and, in turn, grow its profits? Read into Telstra’s growth and expansion plans in Australia and international markets.
- Telstra’s leadership team. Familiarise yourself with Telstra’s CEO, COO, CFO and board of directors. Make sure you’re confident in their ability to push the company forward.
This guide is designed to help you buy Telstra shares. If you’re looking for a more detailed guide on how to buy other shares, check out our guide on seven steps to buying shares online.
Or if you’re interested in buying shares in popular international brands like Netflix or Apple, we have a handy guide for that, too.
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