"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.