Telstra just announced its dividend payment. Is it time to buy?

Why Telstra Stocks Could Be a Smart Buy

Telstra Corporation $Telstra Group Ltd (TLS.AU)$ Australia's largest telecommunications provider, has long been a staple in many investment portfolios. Fundamental analysis shows many reasons why Telstra stocks could be a strong buy in the current market environment.

1. Strong Support Levels - Telstra shares have consistently found support around key price levels in recent months. The stock has maintained a solid base, particularly around the $4.00 mark, which has acted as a floor during market corrections. This strong support suggests that investors are confident in Telstra's long-term value, providing a buffer against downside risks.

2. Bullish Moving Averages - A positive sign for Telstra is the bullish crossover of its moving averages. The stock's 50-day moving average has recently crossed above its 200-day moving average, forming a "Golden Cross." This technical pattern is often seen as a strong buy signal, indicating that the stock's upward momentum is likely to continue.

3. Relative Strength Index (RSI) The Relative Strength Index (RSI), a momentum oscillator that measures the speed and change of price movements, is currently in a favorable range for Telstra. The RSI is neither oversold nor overbought, hovering around the 50-60 level. This suggests that the stock has room to climb without being at risk of a sharp correction, presenting a potential buying opportunity for investors.

4. Volume Trends Volume is a critical indicator in technical analysis, and Telstra has shown increasing volume during price rallies, which is a bullish sign. Higher trading volumes during upward movements indicate strong investor interest and conviction in the stock's potential for further gains.

5. Positive Market Sentiment Overall market sentiment towards Telstra appears to be improving, with the stock showing resilience even during broader market volatility. This indicates that investors view Telstra as a defensive stock with the potential for capital appreciation, particularly in uncertain economic environments.

Despite being down approximately 8% since the beginning of the year, Telstra recently announced a final dividend of $0.09 per share, with the ex-dividend date set for August 28, 2024. Investors must purchase shares before this date to be eligible for the dividend. The payment will be made on September 26, 2024. It looks like Telstra's stock could represent a good buying opportunity.

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While no investment is without risks, the technical indicators suggest that Telstra stocks could be a good buy for those looking to capitalize on the stock's upward momentum.