Pete Wargent blogspot

Co-founder & CEO of AllenWargent property buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place), and CEO of WargentAdvisory (providing subscription analysis, reports & services to institutional clients).

4 x finance/investment author - 'Get a Financial Grip: a simple plan for financial freedom’ (2012) rated Top 10 finance books by Money Magazine & Dymocks.

"Unfortunately so much commentary is self-serving or sensationalist. Pete Wargent shines through with his clear, sober & dispassionate analysis of the housing market, which is so valuable. Pete drills into the facts & unlocks the details that others gloss over in their rush to get a headline. On housing Pete is a must read, must follow - he is one of the finest property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete Wargent is one of Australia's brightest financial minds - a must-follow for articulate, accurate & in-depth analysis." - David Scutt, Business Insider, leading Australian market analyst.

"I've been investing for over 40 years & read nearly every investment book ever written yet I still learned new concepts in his books. Pete Wargent is one of Australia's finest young financial commentators." - Michael Yardney, Australia's leading property expert, Amazon #1 best-selling author.

"The most knowledgeable person on Aussie real estate markets - Pete's work is great, loads of good data and charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, and author of the New York Times bestsellers 'End Game' and 'Code Red'.

"Pete's daily analysis is unputdownable" - Dr. Chris Caton, Chief Economist, BT Financial.

Sunday, 28 December 2014

Telstra - A Turnaround Tale that Did Turn

Telstra Turns

"Telstra's ten percent yield too good to be true" they tipped.

"From time to time turnaround tales don't turn".

Typically true. But Telstra's turnaround tale did turn!



A Healthy Rebound

Yuletide tongue-twisters aside, it has been interesting to watch the studious recovery of Telstra (ASX: TLS) over the past half decade.

When down in the doldrums in 2010 TLS was a paying both interim and final franked dividends at 14 cents, equating to a grossed up yield of more than 10 percent, which certainly attracted some interest!

The stock tipsters were understandably not that keen on the shape of the chart at that time, and there was a general feeling that such a superficially strong dividend may not be sustainable.

13 Year High

In the event, the share price has really rebounded, this week springing to a 13 year high.

The 2014 full year results revealed after-tax profits increasing by a tidy 14 percent to $4.28 billion.

The real icing on the cake for investors has been the franked dividends.

Telstra has been pumping out 14 to 15 cent fully franked interim and final dividends for years now, meaning that each individual share in TLS has paid an impressive $1.415 in tax-favoured income over the past five years.

And the share price has soared to above $5.90 too, doubling the initial outlay invested.

It's certainly true that picking turnaround stories can be a risk-laden approach to investment.

But this turnaround actually did turn around. Terrific.