Ever since the National Broadband Network was first rolled out many investors have been feeling the positive effects thanks in part to the positive outlook brought upon by the program. Telstra, Australia’s largest communications company, experienced the said positive effects as its shares skyrocketed to its highest in three years.
As of the day’s close, the shares of the phone company increased by 1.9% to close at $3.71 per share. These numbers signify the company’s highest since February 2009.
The increase was brought upon by reports of government payments reinforcing the phone company’s dividend yields. Said yield is at 7.7%, a percentage that signifies the amount of earnings gotten from dividends in comparison with the price of the share.
According to reports, the NBN program will be funding a 28c dividend for the financial year that will be ending on June 30th. The same dividend will also be issued for the next fiscal year.
The phone company’s strong performance was a direct contrast of the wider market that suffered from a weak close. The said market was pulled down by losses in stock resources as investors became worried of uncertainties in the European market.
The ASX 200 index fell down by 30.7 points to settle at 4266.3 points, or a 0.71% decline. On the other hand, the All Ordinaries index suffered a 0.82% decline, settling at 4316.3 points after sliding down by 35.6 points.