Telstra shares yield modest gains over a decade despite price drop

An analysis of Telstra Group Ltd (ASX: TLS) shows that a $10,000 investment made in August 2016 would be worth about $9,543 based on the share price alone, reflecting a 4.6% decline over ten years. However, the total return rises to roughly $14,898 when dividends and franking credits are included, equating to an average annual return of about 4.1% (2.9% without franking credits). The company paid 19 dividends in the period, totaling 197.5 cents per share, and most were fully franked, providing an additional $1,601 in franking credits for eligible investors. The share‑price weakness stemmed from the National Broadband Network rollout, which reduced high‑margin fixed‑line earnings and forced dividend cuts between 2016 and 2020. Since then, dividends have recovered, and Telstra’s business model has shifted toward infrastructure assets such as tower leasing, data centres, subsea cables and NBN‑related payments, moving the stock closer to an infrastructure valuation.