Telstra Group Ltd (ASX: TLS) shares have slumped in Tuesday's trade. At the time of writing, the telco's shares are down 1% to $5.36 a piece.
Despite today's slump, the shares are still up 10.3% year to date and 24.5% over the year.
If I bought $8,000 worth of Telstra shares one month ago, what are they worth now?
Telstra shares dropped to an eight-month low of $4.72 on the 23rd of January, before beginning an upwards trajectory. The telco's stock has leapt higher since it posted its impressive half-year FY26 result in mid-February.
Over the past month, Telstra shares have climbed 3.77%. That means that $8,000 invested in Telstra shares just one month ago is now worth $8,301.60.
Meanwhile, investors who bought $8,000 worth of Telstra shares 12 months ago would now have $9,960.
That's a decent return!
Can Telstra shares keep climbing higher?
These days, internet access and mobile phone connectivity are a daily necessity rather than a perk. That means that, regardless of how severe inflation or the cost of living gets, connectivity and telecommunications will remain a high priority for most Australians.
In other words, Telstra is a classic defensive stock that is likely to perform steadily, regardless of what stage of the economic cycle we're in. This is great news for investors who want to hedge against potential volatility elsewhere in the index, but I don't think we'll see a strong upside out of the telco over the next 12 months.
Analysts seem to be mostly neutral on the outlook for Telstra shares this year. TradingView data shows that 11 out of 14 analysts have a hold rating on the stock, and the other four have a strong buy rating. The average target price is $5.26, which implies a 2% downside at the time of writing.
What about Telstra's passive income?
While it doesn't look like Telstra shares will keep rocketing higher this year, it could still be worth buying the stock for passive income.
Telstra's defensive nature means it can offer shareholders a consistent, reliable passive income. In fact, its dividend payout ratio is close to 100% of its earnings.
The telco pays out two dividends per year, in March and September. Last month, investors were paid an interim dividend of 10.5 cents, 90.48% franked.
For FY25, the company paid investors an annual dividend of 19 cents per share. At the time of writing, that translates to a dividend yield of around 3.9%.
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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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