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Telstra - Entitlements End Today - Are You In The Winning Group Of Investors?
BY CHRISTOPHER HALL - 17/08/2016 | VIEW MORE ARTICLES BY CHRISTOPHER HALL

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TLS - TELSTRA CORPORATION LIMITED.


The last day to buy shares with entitlements into Telstra’s buy-back ends today. So the hot question is: ‘Is it worth buying new Telstra shares today?’

The answer is an emphatic ‘yes’ for some investors, and the rest a confused and disappointed ‘no’.

Using calculations from our previous article we can see that:

  • Self Managed Superannuation Funds (SMSFs) paying 0% tax look to make about 13%
  • Charities etc also on 0% tax rates also stand to make about 13%
  • SMSFs paying 15% tax lose 1%
  • All other entities paying higher tax rates lose even more

Note: Prices in calculations used the prices that used Friday’s closing prices, being was only $0.02 higher that yesterday’s price. This difference causing only insignificant changes to the calculations.

Over the coming weeks we’ll bring you updates whether existing shareholders should tender into the buy-back and on how to translate the forms and discuss.

This is not personal advice. Consult your financial advisor and taxation specialist to see if this offer is right for your personal circumstances.



View More Articles By Christopher Hall

Christopher is head of equites at Spring Financial Group. Christopher has over 10 years' experience managing equities desks with thousands of retail clients and responsibility for maintaining and servicing retail and wholesale relationships.



 

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