Telstra tipped to boost dividend

Telstra will report its full-year result on August 28 and analysts say it's likely to reward shareholders with a final dividend of 12 cents and a special dividend of at least 3 cents a share. The dividend would be an additional boost for investors after the telco's shares rallied almost 18 per cent since March to a high of $4.80 in July.

The Federal Government would receive $960 million from the dividend while Telstra's other 2 million shareholders would share in $940 million. Telstra is expected to report a 2002-03 profit of $3.9 billion compared with $3.66 billion last year. But after one-off items, the telco's net profit will be down on last year by 18 per cent to $3.09 billion.